The United States has been the leading innovator regarding the application of strategic planning and marketing principles to museums. These developments are becoming more and more important for managers of Austrian museums. Due to a continuous decline in public funds and growing competition for this decreasing pool of money it will be crucial for Austrian museums to get more access to private money sources. Consequently, they need to provide more public-oriented benefits that are not available elsewhere. It will be more important for Austrian museums to secure a high-quality service level and a positive image.
One can ask, of course, if this shift of responsibility from the public towards the private sector is desirable in Austria where only few large private money sources are available. In order to raise the basic funds for the famous Austrian museums it will always be necessary to pool the money of a large number of individuals, in other words, to raise funds through taxes. That is why the question of whether Austrian museums are considered to be effective must be asked. That is, do they provide essential and up-to-date services for the people who fund them? A further question that needs to be answered is whether the services could be upgraded and extended to a broader audience with the help of sophisticated marketing techniques.
It is astonishing that, especially in Austria, money and marketing are still considered dirty words in connection with museums and particularly in connection with art museums. A lot of people might be disillusioned by the fact that the effective and efficient use of money is a means to the end of creative expression and artistic communication. Michelangelo, for example, was an entrepreneur who sold his artworks for a profit. Rembrandt had a studio and employed other artists.
These conditions make a comparison between the status quo in the United States and the changing situation in Austria very interesting. In 2003, the famous marketing guru Philip Kotler wrote a book about the strategic marketing process in museums, and only recently, the Österreichisches Bundesministerium für Bildung, Wissenschaft und Kultur (BM BWK), which is the Austrian Federal Ministry of Culture, Education and Research, has publicized a study on the profile, positioning and marketing performance of the federal museums. Therefore it is clear that these issues are subjects of current debate – not only within the museum community.
Table of Contents
Introduction
Definitions
Strategic planning
Strategic marketing
Museum
Museum sector
Scope and structure
The museum as a non-profit institution
The museum as a public institution
Financial resources
General remarks
Public funding
Direct support
Indirect support
Private funding
Competition
Range of stakeholders
Visitors
Givers
Staff
Strategic planning process
SWOT-analysis
Formulation of mission
Organizational objectives
Collecting
Preserving
Conducting research
Presenting and educating
Museum leadership
Performance evaluation
Performance measures
Code of ethics
Strategic marketing process
General remarks
Marketing research
Segmenting and targeting
Positioning
Marketing-mix strategies
Program and service strategies
Pricing strategies
Promotion strategies
Distribution strategies
Marketing control
Conclusion
Research Objectives and Key Topics
This master thesis investigates the application of strategic planning and marketing principles in museums, comparing the established practices in the United States with the evolving landscape in Austria. The central research question examines how Austrian museums can improve their effectiveness, secure financial sustainability, and reach broader audiences through the adoption of sophisticated strategic and marketing techniques in the face of declining public funding.
- Strategic planning and organizational mission in a museum context
- Comparative analysis of museum funding structures (public vs. private) in the U.S. and Austria
- Implementation of marketing-mix strategies to enhance visitor engagement
- Challenges of performance evaluation and quality standards in cultural institutions
- Role of leadership, boards of trustees, and professional management in museum success
Excerpt from the Book
Strategic planning
According to Hay (1990: 49), strategic planning is the main task of strategic management, having its roots in military usage, and in probability and game theory. The term strategy was integrated in American management terminology in the 1960s, in Austria and throughout the rest of Europe not earlier than during the 1980s. Porter (1980: 34) refers to the term strategy as taking offensive or defensive actions to establish a superior position in a certain industry.
Strategic planning is a type of long-range planning, consisting of the determination of the mission and related objectives, and an assessment of the external and internal environment of an organization. The focus is on current and future external conditions and developments, not on data of the past or the healing of failures and shortages. It deals with a kind of de-novo design, in other words, the exploration of an organization’s potentials (Hay 1990: 60).
The allocation of resources necessary for carrying out the specified organizational objectives is part of the strategic planning process. Additionally, this process integrates aspects of systematic and continuous control so as to ensure that the basic objectives of the institution are achieved in both effective and efficient ways (Brinckerhoff 1994: 92-95).
To sum up, the underlying principles of strategic planning are:
Concentration of forces
Simplicity
Concentration on relative strengths
Exploitation of chances
Minimization of risks
Co-operation
Summary of Chapters
Introduction: Explains the necessity for museums to adopt effective management and marketing strategies to legitimize their existence and secure funding.
Definitions: Provides clear academic definitions for core concepts like strategic planning and strategic marketing within the museum field.
Museum sector: Details the historical development and current scope of the museum landscapes in the U.S. and Austria.
Scope and structure: Categorizes museums by their legal form, distinguishing between non-profit and public institutional frameworks.
Financial resources: Analyzes the diverse funding streams including public grants, private philanthropy, corporate sponsorship, and tax-deductible contributions.
Competition: Discusses the competitive environment museums face from the broader leisure industry and among each other.
Range of stakeholders: Examines the various groups impacted by museum operations, specifically visitors, givers, and staff.
Strategic planning process: Outlines the steps for implementing strategy, emphasizing the importance of SWOT analysis and mission formulation.
Organizational objectives: Addresses the core museum functions of collecting, preserving, research, and education.
Museum leadership: Highlights the critical role of directors and the governance responsibilities of boards of trustees.
Performance evaluation: Discusses methods for measuring efficiency and effectiveness, including the role of the audit court.
Strategic marketing process: Describes the marketing cycle from research and segmentation to positioning and the marketing-mix.
Conclusion: Summarizes the need for a balance between organizational missions and market realities to ensure future viability.
Keywords
Strategic planning, Museum management, Strategic marketing, Non-profit sector, Public funding, Private philanthropy, Performance evaluation, Visitor engagement, Competitive advantage, Board of trustees, Cultural heritage, Marketing-mix, SWOT analysis, Sponsorship, Mission statement
Frequently Asked Questions
What is the core focus of this thesis?
The work focuses on applying professional management and marketing principles, common in the U.S. museum sector, to the context of Austrian museums to help them adapt to declining public funds and increased competition.
What are the central themes of the book?
The key themes include strategic planning, financial resource management, the importance of mission-driven operations, and the integration of marketing-mix strategies to serve diverse audiences effectively.
What is the primary research goal?
The goal is to determine how Austrian museums can shift toward more sustainable, market-responsive, and efficient operational models while maintaining their core educational and cultural values.
Which methodology is used in this work?
The work utilizes a comparative analytical approach, evaluating historical, financial, and organizational data from both U.S. and Austrian institutions to derive best practices.
What topics are discussed in the main section?
The main section covers the full spectrum of museum management: from financial strategies, stakeholder relations, and strategic planning processes to concrete marketing-mix implementations like pricing, promotion, and distribution.
Which keywords best characterize the work?
Key terms include strategic planning, museum management, non-profit sector, financial sustainability, performance evaluation, and audience segmentation.
How do U.S. and Austrian funding models differ?
U.S. museums rely heavily on a mix of private philanthropy, endowments, and corporate sponsorship, whereas Austrian museums have traditionally been heavily supported by public government funding, though this is gradually changing.
What is the author's stance on marketing in museums?
The author argues that marketing is an essential "bulldozing" tool to achieve organizational goals and that "money and marketing" should not be viewed as negative concepts, but as facilitators for a museum’s mission and creative expression.
What role does the board of trustees play?
The board is identified as a critical leadership entity responsible for governance, financial oversight, and supporting the museum's director in navigating both public and private interests.
- Quote paper
- Mag. Sandra Kreuzer (Author), 2005, Strategic planning and marketing in museums with special regard to the situation in the United States and Austria, Munich, GRIN Verlag, https://www.grin.com/document/135884
