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Arts Management Arts Management Arts Management is designed as an upper division undergraduate and graduate level text that covers the principles of arts management. It is the most comprehensive, up- to-date, and technologically advanced textbook on arts management on the market. While the book does include the background necessary for understanding the global arts marketplace, it assumes that cultural fi ne arts come to fruition through entrepreneurial processes, and that cultural fi ne arts organizations have to be entre- preneurial to thrive. Many cases and examples of successful arts organizations from the United States and abroad appear in every chapter. A singular strength of Arts Management is the author’s skillful use of in-text tools to facilitate reader interest and engagement. These include learning objectives, chapter summaries, discussion questions and exercises, case studies, and numerous examples and cultural spotlights. Carla Walter is an Associate Professor of marketing at California Lutheran Univer- sity, USA. This page intentionally left blank Arts Management An Entrepreneurial Approach Carla Stalling Walter First published 2015 by Routledge 711 Third Avenue, New York, NY 10017 and by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2015 Taylor & Francis The right of Carla Walter to be identifi ed as author of this work has been asserted by her in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identifi cation and explanation without intent to infringe. Library of Congress Cataloging-in-Publication Data CIP data has been applied for ISBN: 978-1-138-88611-7 (hbk) ISBN: 978-0-7656-4154-0 (pbk) ISBN: 978-1-315-71388-5 (ebk) Typeset in Times New Roman by Apex CoVantage, LLC Contents Foreword, Russell Belk xiii Foreword, François Colbert x v Introduction xvii PART I Understanding the Cultural Fine Arts 1 1. The Business of the Arts and Culture 3 Chapter Outline 3 Learning Objectives 3 What’s On? 4 SPOTLIGHT: The Gates , Central Park, New York City, 1979–2005 4 Impacts of the Creative and Cultural Arts Industry 5 The Cultural and Creative Industries: Some Defi nitions and Distinctions 7 The Culturepreneur Producer of the Arts 10 A Contextual Relationship: Artists Versus Managers 11 SPOTLIGHT: The Royal Ballet of England 14 The Cultural Enterprise Framework 15 The Firm’s Structure 16 Cultural Economic Theory 17 Public Policy and the Cultural Industry 20 Consumer Behavior 21 Chapter Summary 24 Discussion Questions 25 Notes 25 2. Studies in Culture 29 Chapter Outline 29 Learning Objectives 29 v vi CONTENTS What’s On? 30 SPOTLIGHT: Spiva Center for the Arts, Joplin, Missouri, 1939–Present 30 SPOTLIGHT: Buying the “Titanic Violin” at an Art Auction 31 Aesthetics, Culture, and Meaning 33 Defi ning Aesthetics 33 Culture and Meaning 37 The Fine Arts 39 Contemporary Visual, Electronic, and Popular Culture Arts 47 Festivals 48 Value 49 Chapter Summary 52 Discussion Questions 53 Experiential Exercises 53 Further Reading 54 Notes 54 3. The Anthropology and Spirituality of Consumption 59 Chapter Outline 59 Learning Objectives 59 Assessing and Creating the Impact Echo 60 Manipulating Cultural Fine Arts Consumers? 62 The Anthropology of Consumption 63 Culture and Consumption 67 Rituals and Cultural Consumption 69 Explaining Consumer Wants 71 Arts Consumption as a Spiritual Experience 76 Art as a Consumable Object and Refl ection of Self: The Practice 79 The Arts Consumptive Experience 81 Chapter Summary 82 Discussion Questions 82 Experiential Exercises 83 Further Reading 83 Notes 84 4. The Economics of Tangible and Intangible Cultural Fine Arts 87 Chapter Outline 87 Learning Objectives 87 SPOTLIGHT: The Santa Fe Opera 88 SPOTLIGHT: Price-Fixing at the Art Auction House 89 The Supply and Demand of Tangible and Intangible Fine Arts 90 Supplying Cultural Arts Services, Ideas, and Products 92 Demand for Tangible and Intangible Fine Arts 100 Conceptualizing the Cultural Arts as a Service Product 106 Pricing Fine Arts Offerings 110 Chapter Summary 114 CONTENTS vii Discussion Questions 115 Experiential Exercises 115 Further Reading 115 Notes 116 PART II Entrepreneurial Development 119 5. The Cultural Fine Arts in Entrepreneurial Process 121 Chapter Outline 121 Learning Objectives 121 What’s On? 122 Finding Money for Culturepreneurial Ventures in the Cloud 122 Playing Down the Profi t Motive in Crowdfunding 124 Culturepreneurs and the Cultural Creative Process 125 Defi ning and Assessing Opportunity and Creating the Business Plan 130 The Marketing Strategy and Positioning 134 Market Scope and Entry Strategies 136 The Arts Service Product Life Cycle 138 Arts Service Product Market Share and Relative Growth 140 Chapter Summary 147 Discussion Questions 147 Experiential Exercises 148 Further Reading 148 Notes 148 6. Consumer Behavior in the Cultural Fine Arts 150 Chapter Outline 150 Learning Objectives 150 The Treasure Hunt for the Wealthy 151 Drawing Lines Around Audience Development? 152 Markets, Market Segments, and Target Markets 153 Segmentation Strategies for Arts Markets 155 Knowing and Understanding the Arts Consumer 161 The Cultural Arts Consumer Purchase Process 174 Chapter Summary 180 Discussion Questions 180 Experiential Exercises 180 Further Reading 181 Notes 181 7. Marketing Research in the Cultural Fine Arts 183 Chapter Outline 183 Learning Objectives 183 SPOTLIGHT: The Irvine Foundation 184 viii CONTENTS Using Management and Business Process Information Systems in the Culturepreneurial Organization 185 Defi ning Marketing Research 186 The Marketing Research Process 188 Designing Marketing Research Studies 195 The Marketing Research Report and Recommendations 200 Chapter Summary 202 Discussion Questions 203 Experiential Exercises 203 Further Reading 204 Research Tools 204 Notes 205 PART III Management and Processes 207 8. The Cultural Fine Arts Organization as a Service 209 Chapter Outline 209 Learning Objectives 209 SPOTLIGHT: Walton Arts Center and Postperformance Post-it Notes 210 Establishing Service Quality Metaphors for Arts Organizations 211 Quality Arts Service Products and Peripheral Services 215 Gaps Analysis in Arts Service Products and Delivery 222 Blueprints and Maps of the Arts Service Encounter 225 Chapter Summary 229 Discussion Questions 230 Experiential Exercises 230 Further Reading 230 Notes 230 9. Cultural Fine Arts Organizations and Their Management 233 Chapter Outline 233 Learning Objectives 233 What’s On? 234 SPOTLIGHT: Discovery Times Square Museum 234 Culturepreneurial Versus Managerial Behaviors 234 Modeling a Culturepreneurial Environment 235 Establishing a Nonprofi t Organization 237 Establishing a Profi t-Driven Firm 241 Leadership Strategies 245 Establishing the Board, Teams, and Organizational Structure 247 Organizational Structures 251 People Management 252 Establishing a “New” Arts Service Product Culture 254 Developing the NASPD Program for the Culturepreneurial Firm 256 CONTENTS ix Chapter Summary 261 Discussion Questions 261 Experiential Exercises 261 Notes 262 10. Copyrights, Intellectual Property, Cultural Policy, and Legality in Cultural Fine Arts Organizations 265 Chapter Outline 265 Learning Objectives 265 SPOTLIGHT: The Band “Miles” 266 Defi ning the Field of Protection for Artistic Endeavors 266 Copyrighting, Patenting, and Trademark Processes in the United States 275 Cultural Policy 276 Chapter Summary 278 Discussion Questions 278 Experiential Exercises 279 Further Reading 279 Notes 280 11. Technology and the Culturepreneurial Organization 282 Chapter Outline 282 Learning Objectives 282 What’s On? 283 SPOTLIGHT: Art in Second Life 283 Using Management and Business Process Information Systems in the Culturepreneurial Organization 284 Management Information Systems 284 Outward-Facing Aspects of the Management Information System 286 Inward-Facing Aspects of the Internal Business Process Information System 297 Chapter Summary 303 Experiential Exercises 304 Further Reading 304 Notes 304 Appendix 11.1. Ethics and the Cloud, Keith W. Miller and Jeffrey Voas 307 PART IV Growth and Succession 309 12. Fund-Raising and Development for the Cultureprenurial Organization 311 Chapter Outline 311 Learning Objectives 311 SPOTLIGHT: Divergence Vocal Theater 312 x CONTENTS Crowd-Sourced Fund-Raising 313 Fund-Raising and Development in the Cultural Arts 314 Types of Fund-Raising 317 Cultivating Benevolence 324 Fund-Raising and Development Management 329 Chapter Summary 335 Discussion Questions 335 Experiential Exercises 336 Further Reading 336 Notes 337 Appendix 12.1. The Permanent Disruption of Social Media, Julie Dixon and Denise Keyes 339 13. Financial Management and Investing in the Cultural Fine Arts Organization 346 Chapter Outline 346 Learning Objectives 346 Investing Ethically 347 Achieving and Maintaining Financial Soundness 348 Overview of Investing and Investment Strategies 361 Setting Objectives 361 Investment Strategies and Risk 363 Investment Ideology and Instruments 364 Chapter Summary 365 Discussion Questions 366 Experiential Exercises 366 Further Reading 366 Notes
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