Marketing for creative industries, Appunti di Marketing

Scarica Marketing for creative industries e più Appunti in PDF di Marketing solo su Docsity! Marketing of creative industries 1. CREATIVE INDUSTRIES Which are the creative industries? Typically creative industries are more and more relevant in the our everyday life. We are consuming a lot of contents today, way more than our parents, for instance. The main 4 groups are: 1. Arts 
 Production, conservation, distribution of visual and performing arts, including museums, galleries, theatres, and festivals 2. Media, information, and communication 
 Production, conservation, reproduction, distribution, and transmission of contents (texts, sounds, images, ideas, and messages) such as publishing, music, film, and communication 3. Fashion, design, and architecture 
 Production and distribution of goods with high symbolic content such as clothing, accessories, furniture, home accents, and architectural design 4. Entertainment and leisure 
 Production and distribution of recreational service, such as live shows, sports, natural parks, amusement parks, and tourism Is the the amount of pages read by people these days less, more or equal to the amount of pages read during the past, do you think people are reading less? People are reading more than in the past because you can read a lot of contents through different means. We read more than in the past, but we read differently. We are reading less books, less newspapers, shorter articles but considering the total amount of pages, of text that we read today, they are totally more than in the past. The reason why is because we have more opportunities to read things, for example the messages that we send through WhatsApp or Facebook. So we are reading more and a lot of these messages are able to deliver to you news (using Facebook or other platforms). This way we get in touch with the outside world. The reason why we are reading more is because we have more time to devote to reading, we are working less. Even during working time we read a lot of things. We are addressed by a lot of different sources of information and this is making out everyday life even more complex than in the past. We are required to have a lot of skills that probably our parents didn’t need to have. The creative industries are increasing their importance. In our everyday life but also in general in the economic system as a whole because creativity is able to create value for us, we are the consumers. We are consuming a lot of creative products because of the enjoyment (reading a book, watching TV, going to the cinema). This way they are able to create a value for us. As we have seen 2 years ago there are several different macro-benefits that are connected to the creative products: the popularity, the enjoyment, the discover, etc. But it is considered that creativity is also a resource also of the so called traditional industries. Ex. Fashion - filled by creativity, created by design, and since the very beginning there is a creativity inside a fashion item. 
 Ex. Automotive industry - there is a lot of creativity, from the design of the model to the way the model is communicated to the market. Mini - we are purchasing the symbol, that symbol has been created using contents. Specific contents that are embodied into commercials are modelling a 1 Marketing of creative industries certain way of caring about the brand Mini. Please consider what is the difference when you purchase a Mini and when you purchase a Renault.
 Ex. Martini - George Clooney, James Bond (he is used also by Omega, Aston Martin). Creativity can be used as a level of competitive advantage for traditional thoughts. Ex. In Italy Antonio Banderas has been associated to biscuits.
 Celebrities belong to creative industries. They are contents, the character is just a content, part of the storytelling. This way traditional industries (automotive, food, real estate) offers you the experience, a dream. By using creative products we increase the value of traditional ones. Typically creativity is something that affects the way we consume, the consumption system. For example, the raise of the movie industry, the fact that we consume contents which are more than those in the past. Which are the creative industries? Macro-area made of several different sectors: arts; media, information, and communication; fashion, design, and architecture; entertainment and leisure. Creative industries as those sectors that propose contents, not something that is functional. When you consider the creativity you are not considering the usefulness, they use technology but they are not technology, they are just content. The distinctive features of creative industries: 1. Non-objective preferences
 In creative industries products are made up of attributes for which consumer preferences are not based on objectively quantifiable parameters. Preferences depend largely on a combination of personal experience, sensations, and tastes. This is also known as horizontal differentiation. 2. Experience goods
 Product attributes can’t be objectively associated with product quality. So the only way a consumer can get an idea of this quality is through first-hand experience. Four consequences arise:
 - consumers can’t resort to objective parameters to predict the quality of a product before they buy and use it. In order to make buying decision they rely on subjectively defined indicators called quality clues
 - consumers value product trials and all the trials encourage or discourage from buying the product in question, because those experiences constitute an anticipation of the product experience
 - reputation of the players becomes a fundamental factor in market relations
 - consumers need to actually experience the product 3. Infinite variety
 The creative industries are hyper-fragmented both in terms of supply and demand 4. Structural failure
 In creative industries, the market failure of many products in inherent to the specificity of production and consumption processes. This is rooted in the hyper-fragmentation which leads for people to notice only a tiny fraction of the product available on the market. 5. Non-utilitarian consumption
 Products in creative industries are consumed primarily for their values that are:
 - hedonic - Utilitarian consumption is when a consumer buys and uses products to reach a goal, while hedonic consumption does not attain a goal, it is the goal, it engages pleasure, aesthetic appreciation, and gratification. 
 - experiential - It’s not the product in itself that delivers value to the consumer, but the entire 2 Marketing of creative industries 2. A CUSTOMER-CENTRIC MARKETING MODEL FOR CREATIVE INDUSTRIES The value of a creative product is experienced through the consumption of that product. Only the consumer can decide whether there is a value. Without product use, there is no product value. Different experiences give different values. The product is only a potential and by using the product we transform the potential into value. Therefore, the value depends also on the way the consumer is using the product.
 Ex. The computer has a potential - but only after using it we can understand the value that is embodied in the computer. The value of experience The way we use the product influences the way we conceive the product. For any benefit we get of using it, we need to sacrifice (price, for example). If the benefits are higher than the sacrifices we consume, otherwise you don’t. 1. Consumer 
 His expectations, history, mindset, culture. We need to know the consumer very well - in what way, when, how often and how much does he consume. This is not controlled by the organisation (or is controlled very little). This makes the work of the organisation very complex. 2. Product 
 The benefits and capabilities they embody are more than the benefits we actually use. We are not able to understand it all and use it all, some external features might help us (friend who explains a movie). This is controlled by the organisation. 3. Context 
 The combination of the environment (physical and virtual) and the relationships that provide the setting for the consumer experience. The experiences we have are communication (the context in which I learn about the product), purchase (the context in which I purchase it), consumption (the context in which I consume it) The customer value Voc=Boc/Soc oc - offering O for the customer C Voc - Value Boc - Benefits (that the organisation’s offering can provide) Soc - Sacrifices (that the customer has to make in order to enjoy the benefits provided by the organisation’s offering) A product is more valuable (the company is more worthy that the competitors) because it offers more benefits or less sacrifices (money, learning, etc.). Marketing department of an organisation is responsible for representing the customer’s viewpoint and ensuring that it is taken into account in the value production process. Marketing is the window outside the organisation (costumers and competitors). It needs to get to the organisational point of view of the costumer, what does the costumer look for. Then marketing transforms the knowledge of the expectations, knows where to distribute and which kind of message to use to deliver the product (promotion/communication). 5 Marketing of creative industries Organisational culture The organisational culture is a set of values and beliefs that translate into management philosophies, which in turn give individuals a sense of membership in the organisation and help guide their behaviours. The three management philosophies are: 1. Market orientation (customer satisfaction)
 To have in mind that your goal is to satisfy the costumer. This is the only way to arrive to revenues since the revenues are your actual true mission. If I satisfy the costumer he will come back to me.
 Ex. Facebook has 2 types of customers:
 - companies - purchase spaces to promote themselves
 - consumers - they use the platform for free since they came first and are more important to Facebook 2. Product orientation (products and services with excellent intrinsic quality)
 Even the marketing function is concentrated on understanding what the best performance is and what should we do in order to achieve these performances. A product is the best one (typically in terms of performance) this is why it is purchased.
 Ex. Pharmaceutical industries - they are interested in discovering the best drug, their main first customer is another company.
 Article about Marketing - once you concentrate too much only on the performance and only on your product and how to improve it in the sphere without considering the reason why your product is used, you produce the best one out there, for sure, but you rick getting kicked out of the market (каруца-кола, пишеща машина-компютър).
 Mostly engines, machines (Ex. Bosch, Samsung, Apple (except for Jobs who was focused on the customer), Tesla (Automotive industry: money on promotion on the car 264$ average while Tesla 6$)) 3. Sales orientation (maximise sales)
 Marketing is in charge for increasing sales. When your product delivers a real value to the costumer, you should make sure to make aware your costumer that your product is as it is. Marketing makes it so that the consumer gets the product (available around the world, when it comes to money, enough to satisfy you, makes you aware of all that). If the mission is to maximise sales (not revenues), you will have the temptation to decrease price which is the worst thing you can do (price war with competitors). This is why Antitrust is working in order to make competition real competition.
 Ex. Go to book store, they don’t have the book I need, the assistant will either offer another place where they have it (more customer satisfaction -> market orientation) or will offer another one similar (maximise sales -> sales orientation) so that you don’t go to the competition. Armando will go for the customer satisfaction and will come back. The process of marketing management 1. Value analysis (market knowledge)
 Understand the costumer. The goal is to build, feed, and modify the organisation’s repository of market knowledge. 2. Value creation (value propositions)
 All the benefits and prices. The goals is to develop offerings that more fully satisfy the expectations of customers, as compared to competitors, and to position these offerings on the market. 3. Value delivery (market performance)
 Deliver the product. The goal is to transfer to the market value propositions as designed by the organisation, free of distortions or misinterpretations. 6 Marketing of creative industries 4. Customer relationship management 
 The goal is to build, nurture and cultivate long-term relationships with customers. The goal is to create offerings that are more valuable for the customer than competitor’s offerings. The way we organise the process is a matter of organisational culture. Organisational role of marketing • Aligning the entire organisation to the market - align all the behaviours of the people • The quality offered by a firm should correspond to the quality recognised by the proper market - if you don’t satisfy the costumer he won’t repurchase your products • A misalignment would be the result of value gaps. Satisfaction doesn’t come from the best benefit, it comes from the best expectation. Expectations come from communication from the company (as well as some experiences from the past) - this sets the expectation of the costumer. 1. Value expected by customers before buying and consuming the product 2. Value analysis (might be value analysis gap) 3. Value planned by marketing - the value proposition designed according to customer expectations 4. Contribution of marketing to value creation (might be value creation gap) 5. Guidance for other units 6. Value planned by other units - value that these other units think customers expect 7. Contribution of other units to value creation 8. Value offered by the organisation to its customers who experience this value through their consumption process 9. Value delivery (might be value delivery gap) 10. Value perceived by customers following their communication, purchase and consumption experience 11. Potential value gap The sources of non-satisfaction are: Value analysis gap, Value creation gap, Value delivery gap. The most important one is the Potential value gap (expectation differ perception). Value gap analysis If there is a value gap between expectations and perceptions, the value-based marketing model underscores the possible causes and indicates the appropriate corrective measures. The most common cause is ineffective value analysis (fault of incomplete or inappropriate market knowledge. How can we represent the production process in creative sectors? Value production processes in traditional industries: 1. Supplier value chain 2. Producer value chain 3. Distributor value chain 4. User value chain
 Value chain of a sector - sequence of the phases of the production process of a product. It is designed for physical products, where production and consumption are separate. Porter’s Generic Value Chain A model (made by Porter) who represents a way production processes were run.
 Embodying a potential benefit into a product but that benefit will come out only during the consuming process. 7 Marketing of creative industries the brand/experience, we are promoting the brand, we is creating a value to the company. Everybody has the potential to create value for a brand (not necessarily being paid to do so). When we think about contents (not traditional industry but a creative one), the consumer has the opportunity to co-create it. The role of consumer in value creation Consumer can be seen as both final user of value proportions, and as the ultimate authority. Consumers’ sensorial, emotional, cognitive, and behavioural responses to the product are where value resides. The activity participate in the product phase. Box with vertically degree of sharing and horizontally degree of control. Degree of sharing - indicated whether participation in production is individual or shared with other consumers: - individual consumption - you are alone reading a book - collective consumption - you have having a drink and put a photo Degree of control - the ways in which the consumer is involved in the production process: - passive participation - a book, a song, we only consume, you cannot control the product - co-production - certain degree of control, travelling - consumer-controlled production - the content comes from the activity of the consumer A combination between the degree of control and the degree of sharing gives: • individual consumption+passive participation = listening to a song • individual consumption+co-production = zoopa • individual consumption+consumer-controlled production = self-produced artist • collective consumption+passive participation = shopping together • collective consumption+co-production = to mama with love • collective consumption+consumer-controlled production = cortocircuito (newspaper in Italy written by consumers) Main advantage of engaging consumers in creating the content - they produce what they are pretty sure will be demanded
 Ex. threadless - people vote and so we know that people will like it The role of the critics We have a huge supply of products, and being experience products it makes it risky (I read book A not book B), time is a scare resource and we are risking to waste it. This risk is called the opportunity cost. When we have this opportunity cost we take a lot of time to decide what to do. Sometimes we get helped by others. Value agent - professional that uses his skills in helping others to reduce the risk of the wrong decisions. Might be critics, influencers, experts. They work on the idea of reducing the sacrifices (the costs, the opportunity cost). Experts establish an additional system that crosses production and consumption. They represent a socially recognised system that functions as a connector of the production system and that of consumption. Their most important source is their reputation, they are socially recognised and their job is crucial in the specific sector. They help customers to reduce risks and we trust them thanks to their reputation. Experts in creative industries contribute to generating value for consumers diminishing choice hesitation 1. Quality clues 
 Their advices are made to reduce the uncertainty of choice 2. Market makers 
 Contribute to the market success of the product
 10 Marketing of creative industries Ex. Oprah’s Club (Oprah was an influencer and suggested books), way of making the audience aware that a book exists 3. Value agents (Sense makers)
 They help people to understand and interpret the content - another way to reduce the costs. I cannot enjoy a content I don’t understand (this increases sacrifices - understanding the content), critics explain us the contents. Pre-experience -> Decision making -> Consumption experience.
 Experts are helping us in the second 2 (decision making and consumption experience) Video: Anton Ego - Ratatouille Experts create value for consumers developing three main activities that reduce the sacrifices associated with the offering: 1. Pre-selection
 Pre-selects the options available to consumers in order to reduce the sacrifices associated with the offering - they are skilled for what to consumer/read/see/use and are more skilled than the consumer 2. Framing
 Gives consumers a tool for comparing and evaluating creative products - to set in the proper light on the product
 Ex. taking a nice picture of the outfit is framing well 3. Interpretation
 Makes their selection process more effective and efficient - gicing you the key for understanding
 It can be broken into 5 components:
 - descriptive - starts to describe the movie itself - you have some more information
 - analytical - personal interpretation of the content
 - entertainment - few humorous comments
 - instruction - an opinion by the author
 - evaluative - his interpretation of the movie, his interpretation of the movie - this is what helps you in deciding 11 Marketing of creative industries 3. THE CONSUMER SIDE OF THE MARKET: THE CONSUMPTION EXPERIENCE We decide on getting a product because we think about the benefits we will obtain by using it. When we purchase the product - we are the owner, we can use it. The company is really involved in the pre-experience (many promotions try to convince you to purchase the product). The benefits, however, start only with the consumption. Anytime a company sells a product - it sells a promise. When we purchase, we trust the promise. The value is the relationship between benefits and sacrifices. A classification of the value (benefits) for creative industries If it is not positive, it is not benefit Purpose: 1. Extrinsic: consumption is instrumental to achieving a further goal - we like this benefit because thanks to it we will use it to get something out of it; consuming the product is a mean to getting somewhere or something
 Ex. studying 2. Intrinsic: the consumer experience has value in itself - we don’t do it with the scope to achieve something else; we do the activity for itself
 Ex. fun Direction: 1. Self-oriented: value is oriented towards oneself
 Ex. I open Netflix and watch a movie that I like 2. Other-oriented: value is oriented towards other
 Ex. I go to the cinema because Armando wants us to see the movie • extrinsic+self-oriented = UTILITARIAN (attending a lesson) - comes from product benefits that are instrumental to achieving other goals consumers aspire to; they are also contents which makes them creative products (newspaper) but they are less “artistic” and they bring utilitarian benefits.
 When the benefits a consumer gets from a product are functional to the achievement of ulterior goals beyond the experience itself, and when the consumer appreciates these benefits for their effects on herself.
 Ex. tour guide and publishing industry • intrinsic+self-oriented = HEDONIC (having fun, read a book - this is the key to consuming creative products, we don’t consume in order to get something practical).
 Derives from the consumption experience per se, with consumers mainly appreciating its effect on themselves. It can relate to a wide range of consumption scenarios - emotional, identity, sacred and spiritual:
 - emotional benefits - elicit emotional reactions that give a sense of pleasure
 - identity benefits - contribute to defining and building consumer identity due to their high symbolic content
 - sacred and spiritual benefits - a bridge to the scared and spiritual sphere (not limited to religion) 12 Marketing of creative industries Sacrifices and perceived risks: 1. Financial risk
 To waste money on an unsatisfactory and disappointing product 2. Performance risk
 The product may not meet our performance expectations; it is impossible to anticipate relative quality before actual consumption; if you are not satisfied, we will change the product - there is a way to reduce this risk
 Ex. Drugs 3. Psychological risk
 Lack of correspondence between product image and our personal image - is the product consistent with my identity (Ex. change the hair colour); what we think of ourselves 4. Social risk
 Image that other can build on us; what the others think of us The dynamics of value We can increase the value in 2 different ways: 1. Increase benefits - increasing the performance
 The value is a promised value - the consumption is the activity of getting these benefits from the product - we decide which kind of benefits we are looking for. Company not only needs to create a product that gives the benefits, it also needs to communicate the existence of that product. You as a company cannot create the demand for your product, you can keep us with the existing product, we can manipulate the demand, we can offer other options, but the decision to purchase or not is up to the customer. 2. Decrease sacrifices - it depends on the specific sacrifice that we consider most relevant; decreasing the risk
 Only if the customer is perceiving the sacrifice, only when he is aware of those sacrifices, those exist in his mind and are compared with the benefits. The consequence is that when a consumer compares more options, he can be manipulated through showing others’ risks - the sacrifices needed. You have to influence the decision, the perception. Expected value - Perceived value = (Dis)satisfaction (pre-consumption) (post-consumption) Cognitive response or Emotional response Positive or negative misalignment of expectations Expectation>Perception = Dissatisfaction - got less than I expected Expectation=Perception - just what I was expecting to get Expectation<Perception = Satisfaction - I got more than I expected • Emotional response - we cannot explain why we are dissatisfied or satisfied - hard to estimate the perceived value • Cognitive response - we can explain why we are dissatisfied or satisfied The benefits (and, therefore, the satisfaction) might take time - you might need days or years to get the benefits (Ex. from attending a course) Only when the consumption activity of a product is visible to the world, you can create and put symbols - make the product a mean to communicate content. Sectors that by nature create symbols - creative industries. Customer satisfaction is the primary goal of any market-oriented organisation. Consumption practices Consumption practices are behaviours used to extract value from the product. This is how consumers create co-value. When I enter in the consumption practices I can understand if my customers are able to extract all the benefits I have embodied into the my product, or to increase the benefits, or decrease the sacrifices, or create a new product. Purchase or repurchase is leaded by satisfaction or dissatisfaction. 15 Marketing of creative industries Value appropriation Every consumption experience engages the consumer on a sensorial, cognitive, emotional, and behavioural level. 3 different main steps: 1. Sense-making (preparing) practices
 Create the conditions for extracting the value; understand what the product is. This process can be found in all consumption experiences
 - categorisation - placing the product in a known category (or near a known one) in order to make intelligible
 - associating - recalling to the memory of cognitive and emotional associations with the category
 - evaluating - expressing opinions on the experience that is being experienced
 - appreciating - a final emotional results of the experience 2. Integrating (appropriating) practices 
 Make the product part of out consumption system, behaviour, and lifestyle
 - assimilating - reduce cognitive and emotional distances with the product - put it into the set of products I usually use
 - producing - use the product gradually acquiring skills on the use. Cognitive and social resources along with consumer competences are critical. When competences are lacking, the product might result unsatisfactory. Cultural capital is also needed for products with high symbolic content
 - personalising - particular uses of the product, not standard, according to its inclinations. The consumer is almost ignoring the standard usage of the product, he creates a usage of his own. This is how the co-creation comes to play. 3. Sharing practices
 Not necessarily - when we share the practices of consuming a product, it becomes consuming with others
 - communing - consumption takes place within an interaction with a social context (not necessarily interaction with other people) but here the product isn’t central to the social experience
 - socialising - when consumption takes place together with other people and the product is the interplay of interaction, essential to the experience
 - communicating - the product is used deliberately and consciously for the communicative value associated with it, becoming an expression of social identity Consumption rituals Ritual - set of behaviours/activities that are repeated almost in the same sequence. Because of this repetition they are able to acquire symbolic meaning. Since creative products provide hedonic value also through their sacredness/spirituality and by contributing to identity, they are particularly well-suited to becoming objects of ritual. Consumption practices are often behaviours that follow pre-set, institutionalised patterns that are sometimes collectively shared. In these cases, experience takes the form of a consumption ritual. 1. Individual - meaningful for the individual alone
 Ex. shaving for men 2. Collective - shared value, communing creates benefits, leads to brand communities Ex. Martini - if you drink Martini you can be the real, the right version. No Martini no party. If consumers don’t consider the product a relevant part of the ritual, the product does not take part of the ritual Ex. Coffee/Cappuccino take part of the ritual of the breakfast. 16 Marketing of creative industries Brand communities A collective consumption phenomenon that’s on the rise in many creative industries. In these industries, value-generating consumption practices are unique. Indeed, brand communities are a group of people who share a passion for a brand and create a community that becomes institutionalised through rituals, shared rules, an informal (and sometimes even formal) hierarchy, and, above all, regular meetings. At the centre of all these activities is the brand. Community is a way of consuming together through interacting, having interaction, using the same product, etc. There are four of value-generating consumption practices in brand communities: 1. Social networking
 Practices seek to create and reinforce social connections within community 2. Impression management 
 Practices target people outside the community with the aim of attracting new members and creating a positive impression of the community itself. Tries to increase the engagement, the involvement 3. Community engagement
 Practices aim to solidify membership in the community 4. Brand use
 Practices have to do with specific behaviours such as grooming or personalising the products related to the brand, try to do a special use of the brand. All those might lead to increase in the sales of a product. One of the first brand communities was a snowboard community. It was a tribe - a very strong community, sort of antagonist of the skiers and this created the strong ties between the members. Not the product per se, but the idea of belonging to it was making the ties so strong. The communities are based on activities. Particular collection experience 1. Collecting
 - The single item’s value depends on its position within the entire collection
 - It can provide all the different types of value: hedonic (the intellectual stimulation of becoming an expert), ethical (the chance to help the producers of collector items by providing financial support and encouraging them to develop their competences), communicative (creating a social identity), utilitarian (they become more valuable in the time
 Often collections are impossible to complete and the value for the collector comes from the feeling that he’s moving toward a conclusion, even though he’ll never be able to reach it. The value of every single item comes from the meaning it takes within the collection. 2. Donating
 - It is not a real consumption, bit it is a valuable relationship with the produced or the creative product
 - It can provide all the different types of value: hedonic, ethical, communicative, utilitarian
 With respect to traditional consumption a donation is a different kind of experience that doesn’t revolve around product use, but centres on a value relationship with the producer. Primarily ethical value but also utilitarian (such as tax benefits). Consumption experiences without possession Experience without possession is access. Here we have no ownership. We do not have total control of the product, we do not have the power. We get some benefits but others no and we suffer fewer sacrifices.
 Ex. car sharing, bike sharing Main differences between Possession and Access is based on the Degree of Control and Consumption practices: 17 Marketing of creative industries 3. System of personal values 
 Set of personal convictions related to:
 - Preferred behaviours - instrumental values (modes of conduct)
 Ex. ambition, courage, understanding, education 
 - Final objectives of existence - terminal values (end states)
 Ex. serenity, peace, beauty, love 4. Lifestyles
 Those define which products are most appropriate and how they can be consumed. The AIO model (Activities, Interests, Opinions) 5. Involvement
 A person’s perceived relevance of the object based on inherent needs, values, and interests. Involvement can be enduring (I like to remain updates even though now I don’t need to purchase and decide anything) or situational (I inform myself only when I need to purchase). Level of involvement : intensity of individual interest for a product and importance of that product for that person. The greater the involvement, the more time we spend on buying and/ or consuming.
 - Long-term involvement - a certain product (or product category) is always very important for the person
 - Situational involvement - a certain product (or product category) is important for the person in a given situation, not always
 - Routine response behaviour - when buying products with a high frequency of purchase and low price, it requires a reduced effort in research and decision-making 6. Psychological factors 
 - Concept of Self - it impacts on the selection of products distinguishing between products able to contribute to the identity (=strengthen the Self and communicate it to others)
 - Life projects
 - Personality traits - set of stable characteristics that define how the individual approaches life and adapts to events 7. Situations
 - macro-context - general economic situation of the country or the area where the consumer lives
 - micro-context - where he/she makes her purchase and consumption choices 8. Market actions
 Creating communication with the aim of shaping consumer needs and desires. This in turn gives rise to motivations and value expectations and these activities relate to value creation and value delivery processes. Knowledge A consumer’s knowledge consists of the set of information she has and the beliefs she applies when interpreting this information and making her consumption choices. 1. Information
 Relevant information about the product categories and to individual products. Subjective and flexible categorisation system. 2. Beliefs
 Set of associations between information that simplify the categorisation and choice processes; associations that base attitudes. ’Canons’ or ‘standards of quality’, which distinguish one from the other as far as genre, trend, movement, or style 3. Attitudes
 They refer to a positive or negative disposition toward an object (in our case a product, brand, store, or Web site) or a subject (an organization, a seller, etc). Consumer attitudes arise from 20 Marketing of creative industries their prior experience of an object or a subject, and consist in a combination of cognitive elements (beliefs) and affective elements (emotions). 4. Individual characteristics
 Some of the individual characteristics seen as determinants of motivations are also applicable to knowledge: • Product familiarity 
 Relates to the number of interactions that a consumer has with a product, either consuming it personally or hearing about it • Product expertise
 Centres on the breadth and depth of product knowledge available to the consumer. It allows to classify consumers as:
 - Ordinary consumers - little expertise, situational involvement, minimal knowledge, attitudes are positive toward a limited number of products/brands
 - Connoisseurs - high degree expertise, enduring involvement, deep knowledge
 - Consumer-producers - applied experience, highly engaged
 Each class differs widely in terms of information, attitudes and expectations of value with respect to the product in question.
 It’s important to differentiate between familiarity and expertise, because while it’s true that a consumer has to be familiar with a product before becoming an expert, there’s no guarantee that familiarity always leads to expertise 5. Personal experience
 It affects product familiarity and expertise. By using a product, consumers generate new information and slot it into their previous knowledge. This is a way to enrich their knowledge, both in terms of variety (breadth) and detail (depth). It increases the sense-making skills. Value expectations change according to how much prior experience the consumer has 6. Pre-consumption activities
 Collection of information from external sources. Investment of temporal, cognitive and emotional resources. The level of involvement impacted on the intensity of the information gathering process and on its continuity over time. The information gathering process is conducted by both novice and expert consumers: the difference regards the sources that are used and the ability to manage the information obtained
 External sources can be classified according to their origin (personal or impersonal) and intent (commercial or non-commercial) 
 21 Marketing of creative industries Pre-consumption activities: Gathering information • Utilitarian approach - collection of information functional to the choice of purchase • Emotional approach - collection of information as an anticipation of the consumption experience. The consumer information set is a set of fantasies, sensations, emotions, intuitions, connected to information Information search plays two complementary roles: 1. to build a set of information and knowledge that serves in decision making; it emerges primarily from the search for utilitarian value 2. to prefigure the value that the consumption experience will provide. it emerges primarily from the search for hedonic, ethical, and communicative value. Knowledge creation Knowledge is the outcome of a process of selection and transformation of information: 1. Exposure: casual / deliberate contact with stimuli 2. Attention: process of allocation of cognitive resources 3. Comprehension: interpretation of the stimulus 4. Acceptance: attribution of credibility to the content 5. Retention: inclusion of stimulus content in long-term memory Perception Perception is the cognitive process through which we attribute a meaning to the reality in which we are immersed. The perceptual process tends to remain consistent through safeguard mechanisms: 1. Selective attention
 - Process of selecting the inputs that will reach the state of awareness, ignoring other
 - Each of us pays attention only to some stimuli, neglecting others 2. Selective Distortion
 - Change of information on the part of the individual when it is not coherent with personal beliefs and feelings
 - Mechanism for interpreting stimuli that have passed the selective attention filter
 - It is influenced by the system of opinions and beliefs
 - The interpretation is always consistent with one's previous beliefs 3. Selective retention 
 - Recall of the information inputs that confirm beliefs and personal feelings and forgetfulness of the inputs that do not confirm them
 - It is the mechanism for memorising information stimuli
 - Only some stimuli settle in our memory Online flow experience Online flow can be experienced when consumers are highly focused on the interaction at hand, when the skills that the interaction demands give them a sense of challenge, and when both these factors are more intense than typical daily activities. Online flow is activated by the sensorial richness or vividness of the stimuli, in terms of quantity and quality, as well as the level of interactivity that the environment allows. Specifically, online flow prompts exploratory search behavior, which is less goal-directed, and more prompted by curiosity and the pleasure of discovering something new Emotional state in which the level of attention and absorption are very high. Loss of the sense of time and the surrounding context. • Concentration very focused on interaction • Challenging • Sensorial richness or vividness of the stimuli 22 Marketing of creative industries Recall: is important when the purchase is planned (the brand is not present when the decision is taken)
 Recognition; is weaker than recall
 - Judging the individual options - The choice process involves taking into account the assessments of every single attribute to come to a preference for one product option, which is the basis for choice.  This process combines both cognitive and affective aspects.
 —Cognitive process (based on rational evaluation of attributes): The first serve to assess tangible attributes, and lead to the application of decision-making rules that utilise detailed information. Two methods of judgement:
 ——Compensatory processes: multi-tribute models that evaluate attributes, with positive / negative judgments, and then compensate
 ——Non-compensatory processes: emphasis on very positive or very negative attributes. Might be lexicalographic model (alternatives are compared on the most important attribute; typically in situations with resource constraints) or cut-offs model (minimum/maximum threshold for some or all the attributes. 2 alternatives: by attribute, progressive elimination by threshold, or subjunctive, elimination of inconsistent alternatives and then compensatory approach on the remaining ones. *
 —Affective process (based on emotional responses): The second apply to intangibles, and, being more holistic, lead to more immediate overviews of product value.
 While cognitive aspects are activated primarily when motivations are driven by needs, affective aspects are more evident when desires underpin motivations.
 
 Vp - expected value of product p
 Gip - personal score on attribute i of product p
 li - importance of attribute i
 n- number of considered attributes 25 Marketing of creative industries 
 
 
 Emotional evaluation processes (Motivations mirror desires)
 Immediate decision-making processes: the anticipation of the emotions that one expects to obtain leads to the choice without activating complex cognitive activities. Positive emotions (approach) are expressed in: Fantasy feelings (conscious emotions) and facilitative feelings (emotions experienced with a lower level of awareness)
 2. Shopping experience: The shopping experience consists of consumer interaction with the physical context (stores) in the case of offline shopping, or virtual environments (Web sites, virtual worlds) for online shopping, with the aim of purchasing a preferred product. It has two different roles: 
 The first is goal-directed and utilitarian, that is, instrumental in making the purchase in question. In this case the store or virtual environment is nothing more than a window display where consumers can choose their preferred products.
 The second is experiential, providing hedonic, symbolic, and communicative value beyond what the product in question offers, so this role is not goal-directed. In this second case, both online and offline stores are interaction environments that can supply additional value, beyond the assortment of products and brands.
 The complexity of the shopping experience:
 A) degree of newness - increase complexity and duration of the process
 B) weakness of attitudes
 C) level of involvement - increases complexity with different effects - situational or durable
 D) perceived risks - they increase the level of involvement and complexity
 E) number and type of purchase roles
 F) complexity of purchase experience
 G) degree of planning behaviour - from planned to impulse buying
 H) purchase roles:
 —indicator
 —gatekeeper
 —influencer
 —decision maker
 —buyer
 —user 26 Marketing of creative industries THE BUSINESS SIDE OF THE MARKET OVERVIEW The market of subjects whose aim in purchasing creative products is not to consume them but rather to incorporate them into production and communication process. Two questions arise: 1. What kind of value can a creative product provide to a business client ? 2. Are there specially designed tools that enable these clients to reach different objectives through creative products ? THE SPECIFICITIES OF THE VALUE OF CREATIVE PRODUCTS FOR CORPORATE CLIENTS 1. Consumers often experience man creative products within other products that may or may not be creative 2. During an experience of a creative product, someone else is sending other messages 3. Often actors in creative industries speak to consumer about or through other subjects. Value creation of products for business clients is the result of processes that have different characteristics as compared to the processes used by final consumers • The value of creative products for a corporate client is not result of the consumption experience. The business client acquires the rights to use the creative product (property rights) in order to incorporate it into organisational production or communication processes for its own offering, and it does with other production or communication factors • The value of a creative product for a corporate client is linked to this client’s relationships with its customers. Demand of creative products in business is normally said to be derived from demand in consumer markets. • The value of a creative product for a corporate client is primarily communicative. The value of a creative product for a business client is essentially communicative (extrinsic and other-oriented).
 Property rights —> production processes —> access certain audience THE VALUE OF A CREATIVE PRODUCT AS A COMPONENT OF PRODUCTION PROCESSES All products in creative industries have the potential to become production factors for other industries. Ex. Football teams profit most not from the stadium games. THE VALUE OF A CREATIVE PRODUCT AS A COMPONENT OF COMMUNICATION PROCESSES The sub-area of creative industries labeled “media, information and communication” is made up mostly of sectors offering products that are exceptional vehicles for promotional communication. Therefore, creative products supply communicative value to corporate clients by allowing access to specific audiences who may be targeted by other organisation. Creative products are socially positioning and contribute to identity building for final consumers, providing them with communicative and symbolic value. Creative products, the organisations that produce them, and the individual actors in the production network enjoy positive associations that can be transferred to other subjects, if an effective connection is established between one and the other. So the communicative value of creative products for business clients can be found here too. 27 Marketing of creative industries The antecedents of effective product placement Whether or not an organisation succeeds in achieving some or all of these objectives depends both on. Might be: • product execution - how evident the brand is; what is the exposure duration; only in terms of its impact on cognitive outcomes; if the brand is presented in various ways, it is more affective • consumer’s individual characteristics - relationships with the brand, with corporate communication in general, or with the specific creative product; the less we know about a brand, the more curious we are; incongruence does attract attention that translates into positive cognitive outcomes, but it’s congruence that generates positive affective outcomes CELEBRITY ENDORSEMENT Celebrities can generate value by playing the role of endorser for products, or spokesperson for organisations that use testimonials in campaigns. Endorsements can take a variety of forms: • direct use of a product (Madonna wearing Dolce & Gabbana) • recommendations (Valentino Rossi’s testimonial for Ford) • simply appearing with the product • attending events organised by the producer (Scarlett Johansson at parties by Moet & Chandon) There are two determinants of its value for consumers: • the effectiveness as an information source - the quality derives mainly from credibility, which in turn depends on the expertness and trustworthiness and attractiveness of the source • the ability to transfer meaning - endorser as a bearer of positive associations in terms of values, lifestyles, behaviours that are transferred to the product or on the brand THE CHOICE PROCESS FOR CREATIVE PRODUCTS: SPECIFICITIES OF CORPORATE CLIENTS 1. Initiation - the person who requests the purchase, demonstrating the need 2. User - the person who uses/manages the product 3. Influencer - the person who has the knowledge and the competences to guide the choice, ofter demanding the specific features of the product or the purchase criteria 4. Gatekeeper - the person who controls the information that serves to make the purchase, and can facilitate or prevent the circulation of this information in the buying centre 5. Decider - the person who has a formal or informal power to choose the spokesperson for the sponsorship 6. Buyer - the person who has the authority and responsibility to negotiate the terms of the contract, and to sign it 30 Marketing of creative industries METHODS FOR DEVELOPING MARKET KNOWLEDGE THE MARKETING INFORMATION SYSTEM It is a set of activities, technologies, procedures, methodologies, and people working together to gather, process, store, distribute, and interpret market data. It essentially collects relevant market data, and empowers the organisation to transform these data into information, or interpretation of phenomena. Components: 1. Activities - constitute the various phases of the process of transforming data into information, information into knowledge 2. Technologies - make the system work effectively and efficiently 3. Organisational procedures - consist in guidelines on how each activity should be performed. Often the guidelines are described in formal documents, and any deviations have to be justified and approved by a supervisory body 4. Methods and techniques - make it possible to collect, process, and interpret data so as to transform them effectively into useful information 5. People - true drivers of the marketing information system because they represent the generators and users of market knowledge Types of data and data gathering - classified by: 1. the purpose they serve
 — primary - gathered to conduct specific analyses or to make specific decisions
 — secondary - are produced for other reasons, although they can also be useful for additional analysis or decision making 2. the sources that can be tapped to obtain these data
 — internal - when they come from departments or personnel within the organisation
 — external - when they refer to institutions or people outside the organisation Purpose and Source can get combined and Primary/Internal is called market intelligence. THE MARKETING RESEARCH PROCESS Set of activities aimed at collecting, analysing, interpreting, and distributing data on market phenomena in an organisation. Whatever the research process, it consists in the following stages: 1. Defining the marketing problem
 The organisation clarifies the problem that it’s looking for information to solve. Might be:
 — analytical issue - revealing the motivations that generate different expectations from different consumers
 — decision-making problem - choosing which kind of company is best suited for product placement 2. Turning the marketing problem into research questions
 Serves to provide information that’s essential to finding a solution. The marketing problem is transformed into a series of research questions, which in turn will guide the choice of research method and techniques
 31 Marketing of creative industries 3. Setting research goals
 Might be:
 — explorative - aims to build a knowledge base regarding a phenomenon when there is no prior knowledge
 — descriptive - obtain a description of a market phenomenon in terms of its basic variables. Assumes basic knowledge, and strives to extend that knowledge
 — casual - aims to investigate the cause-effect relationships between two or more variables 4. Identifying informational objectives
 The organisation specifies the information it expects to get from the study. If this stage is conducted effectively, the organisation will be able to draw up a research brief summing up the previous points. The aim here is to facilitate the creation of an effective research project. 5. Designing the research
 The fundamental components of the research project are established:
 — the approach (qualitative, quantitative, or integrated)
 — the sample
 — the methods and techniques for collecting and analysing data 6. Collecting data
 The most intensive in terms of time, human resources, and finances. Very often the data collection stage is outsourced to specialised field companies, even if the organisation intends to realise the research project with internal resources 7. Analysing and interpreting data
 Analysing using techniques for qualitative or quantitative data, depending on the research goals, which in turn are contingent on the topic of study 8. Presenting results THE MARKETING RESEARCH DESIGN Determining the most suitable approach to use - qualitative, quantitive, or integrated. The choice is essential because it will determine the sample and method to use. There are 3 differences that distinguish qualitative and quantitative research: 1. The size of the sample
 The type and number of subjects that are analysed to obtain relevant research data
 — qualitative - very small sample of no more than a few dozen subjects
 (depending on the research method)
 — quantitative - can involve hundreds of subjects
 (depending on the number of subjects that make up the market phenomenon being investigated) 2. The freedom accorded to respondents
 How much leeway they are given to express their opinions, sensations, emotions, and desires.
 — qualitative - allows from broad freedom
 — quantitative - far more restrictive, utilising tools that offer only a limited set of possible responses 3. The type of information gathered
 — qualitative - produce qualitative information expressed in the form of written content, images and sounds
 — quantitative - generates number and measurements Tradeoff between acquiring deep knowledge (qualitative research) and obtaining generalisable results (quantitative research). This tradeoff has two major consequences: - Qualitative and quantitative research are not interchangeable - There is a significant complementary between qualitative and quantitative research 32 Marketing of creative industries 2. Carrying out observation - space, actors, activities, objects, actions, events, time, objectives, emotions 3. Some structured observation methods
 — protocol analysis - here individuals are asked to perform an activity while applying a specific technique, either “talking aloud” or “thinking aloud”, referring to verbalising either all the actions they perform, or all the thoughts that come to mind while carrying out the activity in question
 — diary - this form of self-observation calls for the individual subjects (or groups) to write down all the activities, sensations and related emotions, and opinions they associate with certain tasks they’re asked to carry out in a given period of time
 — netnography - consists in adaptation of the ethnographic method to the study of consumer-mediated environments : newsgroups, chat rooms, communities QUANTITATIVE RESEARCH Research objectives The main goal of quantitative research is to measure a given phenomenon. The aim is to: - come up with a description of the phenomenon in question with reference to its constituent variables - reveal phenomenon’s underlying causes by appraising casual connections among these variables Typical objectives: - generalise results - discover the relationship among variables that constitute a phenomenon Designing the sample Analyse every member of the target population = run a census The reliability of data from quantitative research depends on: 1. Size
 — The capacity of the sample to provide statistically significant results
 — an organisation needs to identify the optimal sample size, one that strikes a perfect balance between significant results and acceptable costs (around 1000-1500 subjects) 2. Representativeness
 — The capacity of the sample to encompass the variety of characteristics of individual subjects that make up the population Sampling methods: - Probability sample - when every member of the target population is given the same chance to be a part of the research sample - Non-probability sample - some subjects do not have this possibility to be part of the research sample
 PROBABILITY SAMPLING 1. Single random sampling - the sample is extracted from a complete list of members of the population, following any given random procedure 2. Stratifies sampling - a 2 stage procedure:
 — 1. the population is divided into strata
 — 2. a single random sampling is run on each one
 The population must possess certain characteristics that impact the phenomenon under investigation 35 Marketing of creative industries 3. Cluster sampling - sub-groups are also identified within the population that are significant in light of research objectives, and that allow the researchers to sample individual groups. The basic difference here with respect to stratified sampling is that the individual cluster, unlike the stratum, is made up of subjects who are highly heterogeneous as far as the characteristic that impacts the phenomenon under investigation
 NON-PROBABILITY SAMPLING 1. Quota sampling - as stratifies sampling but for selecting subjects convenience criteria is used —> there is no equal probability of being include in the sample 2. Convenience sampling - subject selection is based on convenience as far as time, space, and cost 3. Snowball sampling - built by asking the first subjects in the study to suggest the names of other subjects, until the target sample size is reached Data collection methods Allows the organisation to grasp only the surface of phenomena by using highly structured techniques that limit respondents’ freedom of expression. Most common - surveys, panels, experiments, and structured observation Surveys Controlled individual interviews, which use structured questionnaires on a sample of subjects selected according to appropriate criteria. Designing a questionnaire: 1. Specify information objectives 2. Choose how to administer the questionnaire:
 — personal interviews
 — mail surveys
 — web-based surveys 3. Formulate the questions
 — there must be a real need
 — the question has to provide the information the organisation needs
 — the wording to the question must be clear 4. Format the questions
 — open-ended questions - gives greater freedom of expression
 — close-ended questions: dichotomic (2 possible answers), multiple-choice questions (larger list of possible answers), scale (from 1 to 10) 5. Sequence of questions 6. Run a pre-test Panels - Fixed-sample surveys, with data always collected on the same sample Experiments - Typically applied in casual research. The primary objective with experiments is to capture and measure cause-effect relationships among different variables. Experimental design: 1. the subjects who will make up the sample, along with sample procedures 2. the independent variable 3. the dependent variable 4. the methods for controlling variables that are not relevant to the relationships being investigated, but which can influence them nonetheless The sample is called experimental group, the independent variable is manipulated and the dependent variable is measured. Structured observation - systematic process of recording the behaviours of the subjects targeted by the research, but with no direct contact between them and the researcher.
 Pros: used to measure real behaviour
 Cons: provide behaviour but no indications of the motivations behind it; distortion perceived by observers (with human, not mechanical, observation) 36 Marketing of creative industries IDENTIFYING TARGET MARKETS AND CREATING VALUE PROPOSITIONS Main reasons for the strategic side of the marketing in the decisions: 1. They have medium-to long-term effects, dictating the organisation’s market position in the long run and necessitating investments with returns that are not immediately evident, but that gradually materialise over time 2. They provide a frame of reference for subsequent decisions pertaining to what’s called tactical or operative marketing IDENTIFYING THE MARKET It consists in: 1. a set of actors who interact to exchange goods, services, reputation, and information 2. the activities that form the basis for this interaction 3. additional actors who exert their influence through regulatory actions, infrastructural management, and support for all of the above Marketing decisions call for investments, and to ensure these investments are financially sustainable, the organisation has to assess potential returns. Firms and NPO need a set of market measurement to assess whether or not investments are potentially sustainable or even profitable. They have to define and demarcate the market they have in mind. For any organisation delimiting the confines of a market is a subjective exercise, based on the assumptions of that organisation, and the information it can access. The standard method for defining a market is to consider sales of certain product categories. A market can be represented as a system of different-sized concentric spheres, structured in such way that at the outer fringes there are single product sub-categories and more broadly defined needs, and inside there are other possible ways to group together categories of products and the benefits that customers seek. Moving from a single product to a need means shifting from a product orientation to a market orientation. For the organisation, the choice of approach is subjective and depends on its specific objectives. The market lifecycle Different stages in the life of market based on a time unit and the supply-demand dynamics (sales measured in units or values). Stages: 1. Introduction
 Normally new markets emerge thanks to an innovation that succeed in satisfying benefits that were not previously addressed to the fullest, or transforming implicit benefits into explicit ones. Sales are usually limited and sales growth is slow. The objective is customers education. The main levers are communication and price (high or low) 2. Growth
 Dissemination mechanisms is activated, the market begins to grow, sales rise to a peak, and then start to level off as the market researches maturity. Growth in sales is a combination between new customers and new competitors who are prompt to enter the market thanks to growth opportunities. 3. Maturity
 Sales are stabilise and sales growth by and large stops. The longest stage, so sales fluctuate. 37 Marketing of creative industries Second general consideration : whether to take product units that are already in use, and separate out the ones that need to be substituted.
 MktPott = Nmaxt - Uusedt + Usubst
 N - maximum number of potential buyers
 Uusedt - product units already in use at time t, which excludes their owners from the calculation of potential buyers
 Usubst - the units that are nearing the end of their technical or communicative utility and will have to be replaced
 When it comes to marketing for corporate clients:
 1. the calculations used for consumer markets. When corporate clients buy property rights those are considered an investment => we estimate potential in terms of value and not volume
 2. the organisation needs to build the estimate as a percentage of investments made in all products for which creative products serve as production factors, or in communication vehicles for which creative products are used as a communication factors 2. Estimating the current market and the market potential gap Market share The weight of a company’s sales on the market as a whole = the total sales of a company or institution expressed as a percentage of total market sales. It always relates to a specific content (space and time). Relative market share = the ration of the market shares of organisation over that of the largest competitor. However, market share is too superficial an indicator if the market is fragmented into several customer segments. 2 different aspects of competitive position of organisations: - penetration rate - the sales of the organisation relative to the total purchases for the entire product category made by the organisation’s clients - weighted coverage - the weight of purchases by the organisation’s clients relative to the total purchases in the product category Choosing the market and setting objectives The organisation can concentrate its efforts on: 1. Growing in the current market
 2 market objectives enable organisations to boost market share:
 — increasing penetration - when the organisation covers sufficient slice of the market but the customers it serves only source the organisation for a limited portion of their purchases
 — expanding weighted coverage - when high penetration doesn’t allow for much room to grow, but coverage does 2. Activating the potential market
 — to turn non-users into users
 — to increase the average frequency of purchase and use
 — to augment quantities of products that are purchased and used 3. Creating entirely new market
 — riskiest one
 — with new market customers are not even aware of their needs and desires, much less the fact that there is any way to satisfy them 40 Marketing of creative industries Market segmentation “To what extend should the value proposition be personalised ?” 41