This article investigates the impact of the coronavirus pandemic COVID-19 on marketing within cultural institutions, specifically in the field of digital marketing. The aim is to examine how the pandemic has affected digital strategies, marketing communication, and the performance itself - the presentation of cultural programs. The primary research was conducted in Croatia, using the method of semi-structured in-depth interviews with managers in two cultural institutions in Zadar and Dubrovnik at the end of 2020. A qualitative descriptive analysis was performed to answer the question of how cultural institutions have adapted to the crisis, especially when it comes to the marketing and the performance of cultural programs. The results show a certain degree of flexibility in adapting to the new conditions, in a way that marketing communication after the crisis turned more strongly towards digital media and was followed by adjustments to the cultural programs and their performance, as well as the budget for cultural activities. The marketing digital communication played a key role in this, which proves that cultural management in the era of the pandemic adopted the so-called digital-first paradigm, modeled on the for-profit companies. The authors conclude that culture, as a social need and necessity, will continue its activity after the crisis caused by the COVID-19 pandemic, but that it will also function in new and creative ways.
The current pandemic Covid-19 has had an enormous effect on global society.
Marketing orientation was initially exclusively focused on business entities and concentrated on meeting the needs and desires of customers in the business sector. Over the last decades, there has been a change in the understanding of the function and role of marketing orientation, which extends from business to both civil society and the public sector, with an emphasis on cultural institutions. By adopting marketing orientation, cultural institutions have radically changed their business philosophy. The earlier business philosophy focused on objects or exhibits was re-oriented towards visitors of cultural institutions
In the current era of the pandemic, there is the impression that culture and cultural content are often left aside, and that there are "more important" human activities that are given more attention in this time of crisis on a global scale. But participating in cultural events is an important determinant of an individual’s quality of life (e.g. Casson, 2006; Weziak-Bialowolska et al., 2018).
This article presents a comparative qualitative analysis of the primary research conducted in November 2020 in the Croatian cities of Dubrovnik and Zadar. The research was conducted using an in-depth semi-structured interview with the managers of two cultural institutions – the first case being one of the most famous cultural events in Croatia - the Dubrovnik Summer Festival, and the second one focused on a cultural institution - the Croatian National Theater in Zadar.
Study questions | Asked questions | ||||
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The number of event visitors during a pandemic | Did you record a decrease in the number of visitors during COVID? Can you compare the number of visitors before and during COVID? (If you are able, can you give us the exact number of visitors before and after the appearance of COVID?) | ||||
The marketing during the pandemic | Are you paying more attention to marketing now, during the COVID pandemic, or has the engagement remained the same? | ||||
The outsourcing of marketing functions during the pandemic | Do you hire marketing professionals outside of your institution? In which segment of marketing do you outsource your activities and which segment do you perform within the institution (before and after the appearance of COVID, separately)? | ||||
The strategic and operational impact of the pandemic on the marketing planning function | Given the new situation with COVID, has there been a change in business strategy, marketing strategy, and the annual marketing plan? | ||||
The focus of marketing activities and the target market | Did you keep the target market in the COVID era? What was your target market before, and what is the market now during the time of COVID? | ||||
Marketing distribution and communication as customized elements of the marketing mix in the pandemic age | Which marketing channels have you used before, and which during COVID in distribution (ticket sales)/marketing (business) communication: a) distribution/ticket sales? b) marketing (business) communication? | ||||
Changes in performance management and operational logistics during the pandemic | What has changed in the performance: a) the scope and types of program and the financial value of the program before and during COVID? b) logistics and the program execution? c)arranging the space for the audience? | ||||
New models of marketing communication emerged during the pandemic age that will persist later | Which of the existing models of communication and/or performance is so good that you will keep it (in part or in full) even after the pandemic? | ||||
The connection between event management and tourism | How do tourists fit into your target market and communication (given that you operate in well-known tourist destinations)? | ||||
The general impact of the pandemic on cultural institutions and their business strategies | Open question: The impact of COVID on your business? List the key issues and stakeholders that can help here. How will this affect your future business/marketing strategy? |
The following is an overview of the results of the comparative analysis.
THE NUMBER OF EVENT VISITORS DURING THE PANDEMIC
Institution A recorded a significant decline in the number of visitors due to the impact of the pandemic, primarily because of the epidemiological measure requiring maintaining physical distance, which reduced the capacity - the number of seats for the audience - by as much as 2/3. Similarly, the number of performances was reduced. In institution B, the capacity was reduced first to 1/3, and then to even less than 1/6 of the seats, both indoors and outdoors where the programs were performed. If we compare this data with the pre-COVID period, when the audience filled up to 90 % of available seats during the summer, a significant decrease in available capacity can be noticed. This was caused primarily by the introduction of the epidemiological measure to maintain physical distance between seats, which significantly reduces their available number. What also needs to be pointed out is that some epidemiological measures were also related to the determining of the maximum number of visitors per event/gathering (measures aimed at limiting gatherings), which also significantly affects business within the event industry and the cultural sector activities.
THE MARKETING DURING THE PANDEMIC
Both respondents pointed out a shift in marketing goals, with Respondent I emphasize the reduced overall budget of the festival and consequently the budget for marketing activities. Respondent, I also pointed out that significantly less money was spent on advertising in print and electronic media, as well as on the printing of promotional materials. Both respondents pointed out a stronger communication engagement with users on social networks and other online channels, while Institution A pointed out a stronger effort directed towards e-mail newsletter activities. It is interesting to note the change in practices in institution A, which is pointed out by respondent I, who states that “earlier the main goal was to increase ticket sales, while today the goal is to strengthen the brand”. Institution B, on the other hand, has increased its efforts regarding content marketing and strengthening customer relationships. Ticket price reduction for all groups can also be highlighted as part of sustainable marketing and branding, which in institution A reaches up to 50 %, as well as the engagement on the YouTube channel in institution B, which enables their users to watch plays from the comfort of their own home – an especially important feature during lockdown and/or self-isolation of users due to epidemiological reasons. In all these activities, digital marketing has played a key role.
THE OUTSOURCING OF MARKETING FUNCTIONS DURING THE PANDEMIC
Both analyzed institutions state that, as a rule, they do not outsource their marketing activities, regardless of the current pandemic, or before it. Institution A states that they have a Department for Public Relations and Marketing that conducts marketing activities, while Institution B points out that "employees in the Marketing Department within their institution regularly attend seminars and social media training to make proper use of all resources." To increase the quality of marketing content on social networks, Institution B sporadically uses outsourcing, for example in cases when the hiring of videographers outside the institution is needed for the making of trailers for the new productions and the like.
THE STRATEGIC AND OPERATIONAL IMPACT OF THE PANDEMIC ON THE MARKETING PLANNING FUNCTION
Both respondents point out that in their institutions, given the new situation with COVID, their business strategy, marketing strategy, and annual marketing plan have changed.
THE FOCUS OF MARKETING ACTIVITIES AND THE TARGET MARKET
Regarding the target market, Institution A points out that the marketing focus, due to epidemiological measures limiting travel, has shifted from the previously targeted group - mostly foreign tourist visitors, as they point out, "towards the local audience and the national public". Institution B, unlike Institution A, operates throughout the year, and by being a branch of the National Theater, it is, understandably, predominantly orientated towards the local audience. Before the pandemic, the most significant target groups - the subscribers – consisted of the elderly population, among whom some canceled their subscription due to the global situation, then high school and university students, and finally a group of subscribers aged between 25-40, whose number increased after the beginning of the pandemic. The target group of students remained stable even after the pandemic, which is partly due to the quality cooperation of the Theater (Institution B) with the University of Zadar, and a branch of a bank that co-finances the subscription for students. Part of the program is directed towards the younger population, with an interesting event regularly taking place – an educational get-together between students and actors named ‘Coffee with actors’.
MARKETING DISTRIBUTION AND COMMUNICATION AS CUSTOMIZED ELEMENTS OF THE MARKETING MIX IN THE PANDEMIC AGE
Distribution/ticket sales
Regarding ticket sales, both institutions emphasize that they previously implemented a multichannel distribution strategy, i.e., ticket sales, with Institution A highlighting online sales, local sales, and agency sales, while in the case of Institution B the sales channels were sales at the Institution’s box office, as well as online sales. In both institutions, after the outbreak of the pandemic, only the direct online sales remained stable, which, it should be noted, also contributes to the improvement of epidemiological conditions, given that it reduces congestion and queues at the box office.
Marketing (business) communication
When it comes to marketing tools, Institution A points out the wide distribution of various printed materials - posters, flyers, brochures, printed invitations that existed before the pandemic. At the beginning of the pandemic, only e-mail invitations were used, as well as a minimal number of printed materials with limited distribution, while at the same time the entire online activity increased. This is in line with the previously mentioned marketing goals, set after the occurrence of the pandemic, with the emphasis no longer on increasing the number of tickets sold, which can be classified as a classic paradigm of push or outbound marketing, but a reversal towards strengthening the brand with messages about durability, safety, professionalism, reliability, quality, trust, etc., both concerning the audience and the patrons, sponsors, and donors, which belongs to the modern paradigm of pull or inbound marketing. Institution B points out that social networks (YouTube, Instagram, and Facebook), the official website, and e-mail are all channels they used before and during the pandemic. Due to the reduced number of available tickets during the pandemic, Institution B was particularly focused on the quality of content, or, as stated by Respondent II “For users of social networks to have fun and relax”. It is interesting to notice that within the same institution in their marketing communications they try to avoid placing the focus of the communication on the pandemic, and therefore COVID is not used as a keyword in the published posts.
CHANGES IN PERFORMANCE MANAGEMENT AND OPERATIONAL LOGISTICS DURING THE PANDEMIC
The scope and types of program and the financial value of the program before and during COVID
As a direct consequence of the COVID-19 pandemic on business, Respondent I pointed out: “The reduction of the budget, which resulted in planning difficulties and a significant reduction of program content, led to postponement or cancellation of some already agreed/contracted international collaborations, theater co-productions, and guest appearances by foreign artists.” However, the Respondent continues by stating that “during the planned 47 days in 2020, the Festival presented to its loyal audience almost 50 dramas, musical, dance, folklore, and other performances on 13 different stages and locations in the city of Dubrovnik, which is approximately one third less than usual.” Within Institution A the artistic focus of the program was on Croatian artists, both those who have been traditional staples, as well as faithful collaborators and co-creators of the Festival for many years, and those who found themselves as the most vulnerable group due to the pandemic, as well as young creators (freelance artists, freelancers, students, etc.) for whom the engagement at the Festival was an opportunity and an incentive for their professional activity and further development. The latter activity could certainly be included in the promoting sustainability and inclusion group, given that young people and freelancers are often neglected and marginalized population segments when it comes to engagement and inclusion in major cultural programs. Institution B emphasizes that the Drama Subscription Program remained unchanged, while the program outside of the Subscription decreased. For example, as they state, the traditional Gospel concert, which is held every year in December, could not be organized because it is not easy for foreign musicians to travel during the pandemic. During the pandemic, the emphasis is on local artists, so the program is created accordingly. The number of programs that are not organized by CNT Zadar has also decreased, and the reason for this is a reduced capacity of seats or the inability of art organizations to perform normally, which at the end of November 2020, according to epidemiological measures, were shut down completely.
Logistics and the program execution
Respondent I pointed out the difficulties relating to the traveling arrangements of artists to Dubrovnik during the pandemics. For example, she states that the traveling arrangements of the artists during the pandemic were influenced by some minor obstacles, most often due to the decreased number of available flights, while bus or boat trips were less frequent than usual, mostly due to fears of an increased likelihood of infection, as well as a decrease in available traveling options. However, the organization of the accommodation for the artists in summer 2020 was less complicated than usual due to the decline in the number of tourists, and the subsequent increase in available accommodation capacity. Measures to prevent the spread of infection within Institution A were followed in both mentioned organizational segments. It is interesting how the new epidemiological measures affect the performance of the program itself. The Respondent states that “the new situation required finding new ways to establish a relationship between the artist and the audience, so this year the approaches to the engagement, participation, and expression were somewhat different. The formats of the art programs were smaller, as was the number of audiences who had the opportunity to enjoy them, but this in no way affected the quality of the art content.” Respondent II also pointed out that her institution also respects all the prescribed epidemiological measures, such as, for example, the fact that the artists on stage are distanced at least 4 meters from the audience. In the dressing room behind the stage, disinfectants have been installed and there is increased control of the entering and exiting of the audience from the theater.
Arranging the space for the audience
Within Institution A, despite unfavorable circumstances, great efforts were made to maintain safety conditions, both for its artists and its loyal audience. They indicate that for each rehearsal and performance, a record list was kept and the body temperature of the persons participating in the program was measured, as well as a spectator record containing the name, surname, contact number, and seat number. Numerous other measures were implemented for the program to be performed, among which Respondent I point out the following: “Audience entry required slightly more time than usual, but this was included in our organizational assessment. The Festival box offices had special protective barriers between the cashier and the visitors, and contactless payment was ensured. All seats and standing places were marked and at least 1.5 meters apart, and the recommended distance of 4 meters between the audience and the performers on stage was respected. The Festival staff had adequate protective equipment, and in organizational sectors where it was possible, teamwork was organized. Warnings about the rules of conduct were regularly displayed within the used space, while disinfectants were made available at all entrances. The use of protective masks was recommended. After each performance, all spaces (auditorium, stage, technical spaces, etc.), as well as parts of stage equipment, props, and costumes of the artist, were thoroughly disinfected.” Institution B also pointed out that they respect all epidemiological measures to make the audience feel safe. They also highlight several epidemiological adjustments in their business operations, particularly within performance management. These measures were the following: On the day of the show, the theater doors are opened 30 minutes earlier to reduce crowds. Disinfectants are placed at the entrance to the theater. During each program, the employees of CNT Zadar keep a record of the spectators, while both employees and the audience use protective masks. In the auditorium, the seats are 2 meters apart, but after the announcement of the new measures, the distance between the seats was increased to 4 meters. After each performance, the theater premises are disinfected and ventilated. Rehearsals of the latest CNT Zadar production were conducted in a particularly cautious manner, and although the premier was announced for April, due to the increased epidemiological measures, it was performed only in November. All rehearsals were conducted using protective masks.
NEW MODELS OF MARKETING COMMUNICATION EMERGED DURING THE PANDEMIC AGE THAT WILL PERSIST LATER
The respondents state that Institution A will, even after the pandemic, continue to develop and strengthen Internet marketing strategy, while Institution B will certainly continue to use digital marketing channels, especially social networks. In doing so, Respondent II also states: “We will continue to publish interesting content and communicate with our users through video calls from performers, which has proven to be a very good model of communication with the audience.”
THE CONNECTION BETWEEN EVENT MANAGEMENT AND TOURISM
The importance of this connection has already been emphasized earlier, when it was stated that before the pandemic, the utilization capacity was reaching 90 % in both institutions during the summer months, i.e., during the tourist season. Institution A - The Dubrovnik Summer Festival, points out that they are one of the oldest and most prestigious European festivals, hosting world-famous artists and performers for 71 years, and, as the Respondent I state, “It is not surprising that the Festival is recognized and appreciated around the world and that many visitors come to Dubrovnik to enjoy Festival performances.” Because of that fact, tourists are an important part of their target market, and their marketing communication is largely geared towards them. Respondent I emphasized that the special target group of the Festival consists of British tourists while stating: “The British tourists are the largest group of visitors to Dubrovnik, they have good purchasing power and interest in cultural programs, so the Festival recognizes them as their target group and investments are made in advertising in that market, for example, ads in in-flight magazines of companies connecting British cities with Dubrovnik, advertising in Time-Out Journal, etc.” Since Dubrovnik is a tourist destination where the largest number of visitors arrive by air, and for the Festival to achieve the maximum possible visibility for visitors, most of their marketing activities in the period before the COVID-19 pandemic were planned to follow these needs. They emphasize several things: Large advertising areas are rented in the area of international and domestic arrivals at the Dubrovnik Airport, and printed promotional materials (posters, leaflets, program brochures) in almost all hotels in the city and its surroundings, offices of tourist boards and tourist agencies, in part of the private accommodations as well as a part of taxi carriers; the posters of the Festival that are displayed in public city areas: publicities (20 locations), owned stands (more than 50), city-lights locations at bus stations, and digital totems; promotion of the Festival in the public city areas in the old town - publicity posters, owned stands, banners (3x4 meters) and daily video projections functioning as a promotional channel. It can be concluded that these forms of promotion during the pandemic have been almost completely replaced by digital marketing, as well as, as noted earlier, by focusing on the local population and domestic tourists. Finally, it should be added that Dubrovnik is one of the strongest tourist brands in the Mediterranean, and therefore the Festival, as a renowned cultural event with a long tradition, will certainly return in its full glory in the post-pandemic era. Institution B also stresses the long tradition of their main summer program – the Zadar Summer Theater Festival that has been running since 1995. It is a rich and informative program that takes place in open locations in the city of Zadar and nurtures primarily comedy as a genre. It is held from June to August. “During its 26 years of existence”, as stated by Respondent II, “a total of 19 local productions were performed, with over 200 guest titles from all over Croatia and the world.” Since 2005, the event has been enriched with a music program - a three-day festival titled Zadar Jazz & Blues Festival, which, during the past five years, has brought together world-renowned musicians. Zadar is also a coastal tourist destination, so tourists, in a way, fit into the target market of the CNT Zadar. Here it is also important to stress the quality of cooperation with the Zadar Tourist Board which conducts online promotional activities for the Theater.
THE GENERAL IMPACT OF THE PANDEMIC ON CULTURAL INSTITUTIONS AND THEIR BUSINESS STRATEGIES
Respondent I point out that the key problems caused by the pandemic in Institution A – the Dubrovnik Summer Festival are the following: “The uncertain revenues and reduced budgets, a significant reduction in audience numbers and health risks for the audience and employees.” “Until the end of the pandemic, which, it is assumed, should eliminate the mentioned problems, the most helpful thing is a transparent, open, direct, and honest communication among stakeholders” concludes Respondent I. Respondent II for his/her institution states that the COVID pandemic primarily stimulated creativity in the CNT Zadar, making the Theatre open to the audience in a completely different way. An increase in the engagement and activities on social networks was noticed in that institution, as well as the establishment of new models of communication with foreign artists and teams of authors that sent their video materials that were used as announcements within the communication content on social networks. The organization went beyond the traditional approaches and in such a way brought theater into the home of its audience. In March 2020, during the lockdown period, free online performances produced by CNT Zadar were presented over the CNT Zadar YouTube channel, thus enabling the loyal audience to watch a theatrical play from the comfort of their own home. The fact is that financial resources have decreased during the pandemic, therefore challenging cultural institutions. However, Respondent II states that “CNT Zadar is ready for any situation and all for the benefit of its audience.”
DISCUSSION
It seems that the COVID-19 pandemic has blurred the usually sharp dividing line between cultural institutions and their users, although this line seemed to be sharpened at the start of the pandemic, due to strict epidemiological measures. A significant role was played here by online communication, which kept the relationship between culture and its users alive in almost impossible, and sometimes even completely impossible, conditions for performing events and cultural programs. This is shown by the results of the research conducted in this article, and a similar conclusion reached by Rowen who emphasizes the importance of “creative and pro-social responses of members of one such transformational festival culture” which he calls “subversive inter-subjective inversions” which have as a consequence “the recognition, in-itself, and production, for-itself, of a shared humanity of co-creators and participants in not just ephemeral, but accretive transformational social and environmental projects.”
Under the influence of the pandemic, festivals and other cultural events are transforming, and the COVID-19 pandemic has served as a "catalyst for change" for the future. Changes in the space-time sphere when it comes to theatres, festivals, and other events bring a new role and function of cultural institutions and emphasize the importance of culture in the lives of individuals. This is best seen in the conditions of a pandemic in which cultural contents cannot or can only partially be consumed. The lessons learned from the pandemic, therefore, apply equally to cultural institutions as to the public. In both institutions investigated in this article, a quick and creatively designed response to the pandemic situation was found, and therefore their activities continued despite the difficulties, in an adapted and somewhat “reduced” manner. It should be emphasized that both institutions have relatively good levels of expertise and capacity in terms of digital technologies.
These theses corroborated the claims of the authors who also emphasize the enormous consequences of the pandemic on society