The following appeared in an e-mail sent by the marketing director of the Classical Shakespeare Theatre of Bardville.
“Over the past ten years, there has been a 20 percent decline in the size of the average audience at Classical Shakespeare Theatre productions. In spite of increased advertising, we are attracting fewer and fewer people to our shows, causing our profits to decrease significantly. We must take action to attract new audience members. The best way to do so is by instituting a ‘Shakespeare in the Park’ program this summer. Two years ago the nearby Avon Repertory Company started a ‘Free Plays in the Park’ program, and its profits have increased 10 percent since then. If we start a ‘Shakespeare in the Park’ program, we can predict that our profits will increase, too.”
Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result. Be sure to explain how the answers to these questions would help to evaluate the recommendation.
‘Big data’ is a term that frequently describes large volumes of quantitative information that can be manipulated to reveal patterns or trends in human behaviour and decision making. In the world of marketing, big data refers to consumer purchasing habits, sales figures, and online consumer activity. The Classical Shakespeare Theatre of Bardville is a company that employs these techniques to create a large customer base for its performances which are currently experiencing a drastic decline in audience numbers. Their marketing director believes that the theatre must act now to attract new customers or risk closing its doors. First, the Classical Shakespeare Theatre must define which metric of audience size it wishes to measure. Is it ticket sales or patron attendance? Sales figures can be misleading, and without an informed definition of what the theatre is trying to achieve, the data may be misinterpreted. If it is patron attendance, the theatre must consider the demographics of the people who are most likely to attend its shows. If the majority are members of the older generation who may have difficulty hearing, the promoter should consider bringing the show to area senior centers. On the other hand, if the theatre is attracting a younger audience, it should consider hosting outdoor performances in the downtown area to attract young people. The next step is for the organisation to segment its market. The information it needs to segment its market depends on what it is trying to achieve. If the theatre is producing Shakespeare’s works, it should consider whether or not all of its patrons are interested in Shakespeare. If only a small segment of the audience is interested in Shakespeare, it may be more profitable for the theatre to produce other shows featuring other playwrights rather than produce Shakespeare’s plays. In addition, it should consider the location of its theatre. If the theatre is located in a rural area, it may have a hard time attracting patrons. If the theatre is in a large city, it must consider the costs of transporting patrons to the theatre. The theatre must also examine the diversity of its customer base. Is the theatre attracting a diverse group of people, or is the theatre attracting only a small percentage of a racial, cultural, or sexual group? If its shows are attracting only a certain segment of the population, the theatre may find that changing its approach, as suggested above, is necessary. For example, if the theatre’s shows are attracting only white people, it may be advisable to produce plays and shows that appeal to a broader audience.
The Classical Shakespeare Theatre of Bardville claims that its shows are attracting fewer and fewer people, and the theatre’s marketing director believes that a ‘Shakespeare in the Park’ program is the best way to increase its profits. The theatre must define exactly what it is trying to achieve. If it is looking to increase ticket sales, it may find that switching from traditional theatre performances to outdoor performances in parks does not draw the patrons it needs. On the other hand, if it is trying to attract new audience members, it may benefit from changing its shows to appeal to a wider group of potential patrons. The theatre must also examine its demographic. If the majority of its patrons are over the age of 60, it will be more difficult to attract younger patrons. Theatres cannot assume that just because the marketing techniques of recent years have done well, they will continue to work in the future. The theatre must also examine the costs involved in implementing the new program. The theatre cannot assume that just because the Avon Repertory Company has been successful with its ‘Shakespeare in the Park’ program, the theatre will attract the same audience. Finally, the theatre should consider the political climate. When instituting new programs, it is important to consider how the new programs will be received by the public. If the theatre knows for a fact that it is attracting a politically conservative audience, it may not enjoy running plays that may be considered controversial.