Marketing Plan Final Draft 12-3-14

1

W. H. Over Museum Guest Development Marketing Plan

Tyce Daggitt Kayla Haeder Ryan McCarty

Brandon Widman The University of South Dakota

Dr. Rand Wergin BADM 770

December 3, 2014

2

Executive Summary

The museum is running on low financial resources and is relying on volunteers. Expenses are exceeding revenue. Reductions in financial resources would likely be detrimental to the museum. The museum focuses little on the marketing function with no written marketing goals and objectives and has not been effective in bringing in visitors to the museum. From 2012 to 2013 estimated visitors of the museum dropped by almost one thousand from 9,583 to 8,589 in 2013 (Johnson et al., 2014, p. 14). The awareness, profitability, and brand preference of the W. H. Over Museum are lower than competitors. Tourism spending in South Dakota has been increasing (Norton & IHS Global, 2014, p. 17, 49). One reason that the W. H. Over Museum’s advertising has not been successful is that the advertising lacks a clear brand of what the W. H. Over offers and does not reach enough potential customers.

The goal of the proposed marketing plan is to increase the number of museum visitors, with an objective of increasing museum visitors by 10% per year for the next five years. The museum should pursue a differentiated defender strategy to offer a quality product and service to customers and work to not lose market share and further seek to penetrate the market. The museum should continue to reach the whole mass market and focus on attracting tourists and commuters traveling along Highway 50 and I-‐29. The plan will require an estimated $12,750 from outside donors for implementation. Executing this marketing plan should increase awareness of the museum, increase the number of museum visitors, and increase customers’ perceived quality of the museum. The museum should conduct an initial audit of the marketing plan at the beginning of the quarter after the implementation of the new marketing plan to track results.

3

Table of Contents Executive Summary ..................................................................................................................................... 2

Situation Analysis ........................................................................................................................................ 5

Company ..................................................................................................................................................... 5

Current Marketing Strategy and Performance ............................................................................................ 5

Organization Resources .............................................................................................................................. 7

Summary ................................................................................................................................................... 10

Context/Market Attractiveness ................................................................................................................ 11

Demographic and Sociocultural Trends ................................................................................................... 11

Economic Growth and Stability ................................................................................................................ 12

Political Trends .......................................................................................................................................... 13

Legal and Regulatory Issues ...................................................................................................................... 13

Technological Advancements ................................................................................................................... 14

Natural Environment ................................................................................................................................ 15

Summary ................................................................................................................................................... 15

Industry Attractiveness/Business Position Matrix ................................................................................... 16

Porter’s Five Forces Analysis .................................................................................................................... 17

Industry at the Macro Level ...................................................................................................................... 19

Competitor ................................................................................................................................................ 20

Customer ................................................................................................................................................... 21

Market Attractiveness/Competitive Position Matrix Figure ................................................................... 27

Performance Review ................................................................................................................................. 28

Key Issues .................................................................................................................................................. 29

SWOT Analysis .......................................................................................................................................... 29

Strengths ................................................................................................................................................... 29

Weaknesses ............................................................................................................................................... 30

Opportunities ............................................................................................................................................ 30

Threats ...................................................................................................................................................... 31

Opportunities and Threat Matrix ............................................................................................................. 32

Analysis ..................................................................................................................................................... 33

Marketing goals and Objectives ............................................................................................................... 35

Marketing Strategy ................................................................................................................................... 35

4

Action Plans ............................................................................................................................................... 36

Positioning Statement ............................................................................................................................... 37

Value Proposition ...................................................................................................................................... 37

Logo Options .............................................................................................................................................. 39

Organizational Chart .................................................................................................................................. 41

Punch List/Budget ...................................................................................................................................... 42

Projected Profit and Loss Statement ......................................................................................................... 43

Formal Controls ......................................................................................................................................... 43

Informal Controls ...................................................................................................................................... 47

Marketing Audits ...................................................................................................................................... 49

Implementation Schedule and Timeline .................................................................................................. 49

Contingency Plan ...................................................................................................................................... 50

References ................................................................................................................................................. 51

5

Situation Analysis

Company

Current Marketing Strategy and Performance

The W. H. Over Museum's mission is to collect, preserve, document, exhibit, research,

study and interpret objects relating to natural and cultural history, primarily of South Dakota;

and to provide interpretive exhibitions, educational programs, publications and other

appropriate means of conveying an understanding and appreciation of this region.

The W. H. Over Museum currently does not have a defined marketing strategy. Current

marketing efforts closest resemble a market penetration strategy. The museum is attempting to

increase visits from the museum’s current market with the museum’s current offering.

The museum does not have clearly defined marketing goals and objectives. No written

plan is being followed to lead the museum towards implementing a marketing strategy to reach

goals and objectives. No time frames, benchmarks, or measurements are established to track

the success of marketing efforts. Additionally, the W. H. Over Museum lacks recognizable

branding of the museum’s offering.

The museum’s marketing is currently achieved through a website, social media, news

articles and advertisements about the museum and events in The South Dakota Magazine,

Nebraska shoppers, The Sioux City Journal, paper articles, letters, and a monthly column in The

Equalizer.

The mission statement is not being followed to direct the museum’s marketing and

operating decisions. Additionally, not all exhibits and events fit the museum’s mission

6

statement. Efforts have been made to have the mission statement guide the museum, but have

not been effective.

There is no clearly defined competitive strategy. However, overall cost leadership is the

competitive strategy the museum’s efforts closest resemble. Efforts are made to keep costs low

to survive a small budget and keep costs low for visitors. The museum would be classified as a

reactor, because it has no clearly defined product-‐market development or competitive strategy.

The museum is attempting to reach all members in its market. This market consists of

tourists and area residents. These can be further split into tourist, local residents, students,

families, groups, historians, and Sletwold Hall rentals. Although not specifically defined as a

target market, a large portion of the museum’s visitors are fourth through eighth grade school

trips.

The museum does not have a positioning statement to guide marketing efforts. There is

not sufficient awareness of the W. H. Over Museum. Few potential visitors in the market know

about the museum or what is offers. When mentioning our class project for the W. H. Over with

friends, family, and colleagues, only two knew the museum existed. Without awareness of the

museum, potential customers cannot have perceptions of what the museum offers.

The museum exhibits a large variety of items from the extensive collection in permanent

exhibits and offers some temporary exhibits in Sletwold Hall for visitors. Additionally, several

museum-‐hosted events are offered to the public throughout the year. Sletwold Hall is also

available to rent for outside hosted events. Everything the museum offers is only available at

the museum’s location on the edge of USD’s campus. No admission is charged to museum

7

visitors. Promotion of the museum is limited by few resources and no established goals or

objectives.

Organization Resources

The museum’s annual budget of $80,000 to $110,000 is currently financed through

donations, grants, revenue from the event room rentals, and the gift shop (Johnson et al.,

2014, p. 9). Additionally, there is a donation box located in the lobby that is used to fund daily

upkeep and operations. Some volunteers donate personal funds to cover shortages if cash isn’t

available for small purchases. Many volunteers and Board members have relationships with

people from the community and the surrounding area who give non-‐monetary donations to

help operate the museum. Grants are occasionally given for projects the museum is

undertaking. Groups and individuals rent the event room, bringing in some additional revenue

throughout the year. The gift shop has been a source of revenue in the past; however, due to

current management, lack of an accounting system, and lack of internal controls, it is difficult to

determine if any revenue is currently being generated from the gift shop. The museum building

located on the edge of USD’s campus next to the Dakota Dome is owned by the City of

Vermillion and the land the building sits on is owned by the South Dakota Board of Regents.

There is a wide variety of items in the museum’s large and growing collection, ranging from

priceless and rare items such as Native American ghost shirts and an Egyptian mummy to more

common natural and historical household items. Currently, the collection includes: an Egyptian

mummy, USD documents and memorabilia, paintings from South Dakota artists (including

Oscar Howe) and out-‐of-‐state artists, fossils, skeletons, historic firearms, clothing, taxidermy

8

animals, electronics, household items, books, documents, Native American items (including

ghost shirts and many moccasins), and natural history items. Throughout the collection are

many unique items pertaining to the history of South Dakota. The museum’s collection of items

has two owners: the Friends of the Museum and the State of South Dakota. No inventory of the

entire collection has been completed since 1997, making the museum unaware of everything

held in the collection (Johnson et al., 2014, p. 13). Current efforts have been underway since

2010 to complete an inventory of the entire collection. Two people are currently employed by

the museum: a collections manager and a front receptionist. Both are experienced and familiar

with the operations of the museum. Gift shop employees are not volunteers nor paid by the

museum, but are instead supplied and paid through the Experience Works program. Many

volunteers and board member are dedicated to the museum and have experience and

connections that are useful for running the museum and attaining donations.

State funding for the museum has been discussed by the state legislature, but hasn’t

been approved. The W. H. Over Museum is the only museum dropped from state funding due

to previous budget cuts that has not been granted funding again. There are technological and

display improvements needed throughout the museum that could be initiated to better

compete with other tourism, research, and entertainment competitors if funding was increased

through the state or through donations. Additionally, increased resources could be used for

better upkeep and preservation of the collection.

The museum is currently running on low financial resources and is relying on

volunteers. Current expenses are exceeding revenue. Reductions in financial resources would

likely be detrimental to the museum and make it difficult to viably continue into the future. A

9

reduction of volunteers could create a need for the museum to create more paid positions. A

combination of reductions in both volunteers and donations could, however, make it difficult to

create paid positions.

The museum wants to create a first-‐rate experience for visitors and offers custom-‐

guided tours for visitors. One of the highlights for many volunteers is interacting with visitors.

However, this visitor orientation is lost in the content, layout and design of exhibits. What the

customer wants and needs doesn’t seem to be in the forefront of the many factors that affect

the planning of exhibits, of deciding what to display and how to display exhibits. Considering

this lack of customer consideration, the museum is sales oriented, trying to offer its product of

experiencing the exhibits without making sure their product is exactly what the visitor

(customer) needs.

The museum’s focus is short-‐term. There are no obvious long-‐term goals present that

everyone is working towards to improve and to grow the museum. Instead, the focus is on

short-‐term survival through resource constraints. Many within the organization recognize

improvements could be made and they seem to be supportive of change. However, there is

some apprehension to change for fear that it could cause division. With the presence of a

change agent, many within the organization would likely be willing to embrace change.

There are a few notable instances of power struggles and internal politics at the

museum. First, is the relationship between the gift shop manager and the Board. There is little

transparency on how the gift shop is run and there has been a consistent decrease in revenue

over the past few years. A power struggle exists between the manager and the Board, because

the Board feels uncomfortable disciplining or replacing the manager. There also may be some

10

internal politics present among the Board of Directors. Due to the fact that most of the people

involved with the museum are volunteers, there is little accountability and it seems difficult for

the Board to set a clear vision for the museum.

The museum focuses little on the marketing function. No written goals and objectives

are followed to guide marketing efforts. Few resources are allocated for marketing. No written

plan is followed is to reach customers. Executive positions in the museum are filled with

volunteers. Because positions are filled with volunteers, it can be difficult to find individuals to

replace or fill openings in executive positions. Because positions are filled with volunteers, it

can be difficult to control work, since it is difficult to reprimand and correct volunteers and

retain volunteers afterwards.

Despite the struggles the museum faces, volunteer and employee satisfaction and

morale are high. Volunteers are dedicated and upbeat about their contributions to the

museum. Paid employees are satisfied and have refused pay increases.

Summary

The museum’s organizational structure creates challenges for implementing and

supporting marketing strategies. There is no clearly followed marketing strategy for the

museum’s organizational structure to support. With the presence of a written followed

marketing strategy, goals and objectives could still be difficult to reach. Although volunteers

can accomplish much, there can be potential for lack of understanding, accountability,

communication, and responsibility. Volunteers are not obligated to pursue organizational goals.

If a volunteer does not support a strategy, they can quit or not do portions of their job

pertaining to a strategy. While the volunteer organizational structure can create difficulties, the

11

museum can still implement and support a defined written marketing strategy. High volunteer

loyalty and commitment can help the museum overcome potential difficulties.

Context/Market Attractiveness

Demographic and Sociocultural Trends As technology and media are saturating the lifestyles of customers in the museum’s

market, attention spans have lowered. Traditional family structures are changing. Society is

becoming more politically correct. The economy is recovering from the recent recession. Gas

prices are lowering. The combination of these two factors is changing lifestyles as more

discretionary dollars become available. Population diversity is increasing. Social media use has

greatly increased. Smartphone use is increasing, making many individuals more connected to

the Internet and using apps than ever before.

As attention spans shorten, advertising needs adjusted to be effective and exhibits

might need to be changed to keep visitors engaged. As traditional family structures change,

family vacations, education, childcare, and lifestyles change, affecting the museum industry. If

museums do not keep up with what is considered offensive in society’s politically correct views,

then there is the potential for unintended negative press and offended members of the public.

Increases in discretionary income increase the amount of money available from consumers to

spend in the tourism, museum, and entertainment industries. As population diversity increases,

new opportunities become available to reach new markets, and marketing plans may need to

be changed to reach the changing population. The growing social media sector can be used to

reach customers and build relationships. Additionally, social media is used by many consumers

12

to share reviews with family, friends, and the public. Many consumers use smartphones to look

up places like museums to determine if going to visit is worthwhile. Additionally, museums can

develop smartphone apps to reach customers and offer services like app guided tours.

Some of the museum’s collection are sacred to Native Americans. Other items in the

collection are important to local residents and South Dakota history. The museum has a social

and an ethical responsibility to handle the storage and displaying of items respectfully and

tactfully. If the museum does not display sensitive items respectfully and tactfully, then

customers may become offended and no longer support or attend the museum. As society

continues its direction towards political correctness, proper portrayal of the collection becomes

more important.

Economic Growth and Stability

The GDP of South Dakota increased 6.8% (adjusted for inflation, 3.1%) during the years

2012 to 2013, making its GDP ranked fourth highest in the United States and nearly twice the

rate of the rest of the nation (Montgomery, 2013). South Dakota personal income has been

growing since 2009. However, growth has been leveling off since 2011. Per capita personal

income in 2013 was $45,558 (Saint Louis FED, 2014). The local farm economy has been strong,

but is facing difficulties from low commodity prices coupled with high input and land prices.

Further difficulties in the farm economy could hurt the local economy. The strong local

economy is supportive of consumers visiting the museum.

South Dakota tourism is a growing industry. Statewide visitor spending last year

increased by 3.1% (Norton & IHS Global, 2014, p. 13). Clay County visitor spending increased by

13

5.8% (Norton & IHS Global, 2014, p. 49). The W. H. Over Museum is part of the tourism industry

and industry growth benefits the museum.

Political Trends

After being founded in 1883 and operated by the State of South Dakota, funding of the

W. H. Over Museum was lost during state budget cuts. If the state legislature voted to reinstate

funding of the museum, updates and improvements for the museum could be pursued.

However, the museum needs accreditation to receive state funding. Some obstacles exist

making it difficult to obtain accreditation, like required full-‐time managerial staff.

Government spending is a political issue that affects potential museum funding. Some

South Dakota politicians are committed to avoiding budget deficits. If funding the museum

would require the state to have a budget deficit or cut other areas of state funding, it could be

unpopular to fund the museum and difficult to raise support for funding in the legislature.

Legal and Regulatory Issues

The museum must follow certain legal procedures to acquire ownership of items in the

collection. If donation paperwork is not filed correctly to unconditionally transfer ownership,

the museum may face disputes with families requesting donations be returned. Additionally,

safety codes need to be followed to keep visitors safe. Some items in the collection require

special permits and licenses to possess. If permits and licenses are not kept up to date, the

museum could face legal issues for possessing illegal items. The museum must also meet

requirements and file paperwork to continue on as a non-‐profit organization. The recent Native

14

American Graves Protection and Repatriation Act (NAGPA) directly affected the museum when

the federal government came and removed many Native American grave and skeletal artifacts.

The museum’s collection has many Native American items, which could be affected by future

legislation.

Technological Advancements

Recent advances in technology have significantly changed how potential visitors want to

access what the museum offers. Technology has made it possible for museums to offer an

interactive technology-‐guided experience where visitors can explore deeper into areas that

interest them and pass over areas of less interest. Advances have also made it possible to use

multiple mediums to display items and convey information. Many consumers want and need

technology integrated into their experience much like it is in other areas of life. Changes in the

lives of visitors because of technology have caused many to prefer receiving information

through video and audio and not prefer reading. Internet and social media have become

common places for potential visitors to see what museums offer and to know what other

visitors think of the museum. Internet and social media make it easy for potential visitors to

compare museums and other attractions.

Visitors have mostly embraced multimedia technology use in museums. However, some

visitors prefer places to get away from multimedia technology and have not fully embraced its

use. Collecting information about visitors and tailoring marketing to individual visitors based on

their preferences and demographics has been made easier through technology. Social media

has also created new ways for museums and visitors to exchange information.

15

Future multimedia technology can create new ways to draw museum visitors into

history and make it real for them. Future generations will become more used to technology in

every area of life. This creates a potential threat of losing visitors, especially those attending the

museum for entertainment and vacation, because visitors may become less interested in a

walkthrough and read experience like the W. H. Over Museum currently offers.

Natural Environment

Poor weather like excessive snow and heat can reduce the number of visitors to the

museum. If school fieldtrips or vacations are planned and there is poor weather, then

cancellations are likely. Some schools and vacationers might reschedule, but others will not.

Summary

In the museum market there isn’t a large identified source of customer pain. Some

customer pain arises from a need to access items that only museums can provide, but how

many customers experience this pain and exactly what items the museum possesses that

resolves the pain isn’t clearly defined. The museum provides visitors the ability to directly see

historical items. There are many ways customers can learn about the past. However, few of the

other options allow the customer to be close to historical items and see the items from the past

for themselves like a museum does.

The museum currently doesn’t have a specific segment of the market it is attempting to

reach. The whole market, which the museum is trying to reach, is growing. Clay County tourism

spending has increased an average of 6.3% the last two years (Norton & IHS Global, 2014, p.

16

49). The population of Clay County has slightly grown over the past ten years ("Google Public

Data," 2014). The museum doesn’t currently have a target market segment. Because of this, it

would be difficult for a currently reached market segment to provide a springboard into other

segments.

Industry Attractiveness/Business Position Matrix

Competitive position is low. The museum has a small share of its competitive market. Some

of the museum volunteers and visitors are loyal to the museum and dedicated to its success.

Margins for the W. H. Over Museum are tight. Some technology used in the museum is not up

17

to date with current technology and the museum does not possess extensive marketing

knowledge and skills.

Industry attractiveness is medium. As calculated in the customer section of the situational

analysis, the estimated total market for the museum is 74,565. This market has been growing

throughout the past few years. Competition is intense. Some of the museum’s main direct

competitors are running expensive marketing programs to increase visitors. Many museums

don’t charge admission and those that do are not charging large admission fees. There are

specific government regulations that must be met to possess certain historical items. The

industry does not require sophisticated or complicated technology.

Porter’s Five Forces Analysis

Rivalry among present competitors is medium. For many museums it is easy for

customers to switch to another museum. However, some museums have items that

competitors neither have nor can obtain. Museums are generally small, especially in the

Midwest and there is not a single dominant industry leader. Most competitors differentiate

themselves based upon what area of history specialization. There is a high investment intensity

in the museum industry. Museums generally require large amounts of investment into

acquiring and preserving collections and the funds required to do this are fixed costs in nature

and don’t vary based on the number of visitors.

The threat of new entrants into the museum industry is low. Starting a new museum

requires large capital requirements to acquire historical items, permits and licenses, and

facilities. There are also learning effects present, because running a museum requires

18

networking and extensive knowledge in history, preservation, donations, and legal

requirements. The market for museums is saturated with numerous museums within South

Dakota and the tri-‐state region. Many museum competitors differentiate themselves by

specializing in certain areas of history or local events. After considering the many other options

potential visitors can do instead of visiting museums and the number of museums in the

industry, it would be difficult for a new museum to gain recognition and a large market share

unless the new museum specialized in an area that isn’t specialized in by competitors, which

would also interest many visitors.

There is a high bargaining power of suppliers. Many museums are dependent upon

donations, volunteers, and government funding. Because these are voluntary and museums

don’t compensate benefactors for their support, there is little other than common values and

relationships that motivate benefactors to continue their giving.

Bargaining power of buyers is medium. Buyers’ concentration is low. People needing

what the museum offers are spread out across many schools, states, and cities and there is no

one customer or group of customers that comprise most of the demand for museums. The

costs of switching from one museum to another is low unless a long-‐term integrated

collaboration between a museum and its customer exists. Museums offer rare items that

customers cannot easily access. This makes the museum’s offering an important part of a

museum’s customers’ product if that product requires research of the past. Because customers

are decentralized, it is unlikely that customers pose a threat of backward integration.

The threat of substitute products is medium. Museum customers can receive

information they need from databases, documentaries, books, classes, and by purchasing

19

historical items. Customers who visit for entertainment and vacations can easily substitute a

museum visit for a movie, a sporting event, or an amusement park, for example. However,

some information and items in museums, customers cannot access anywhere else, making it

difficult to find a substitute for certain museum offerings.

Industry at the Macro Level

The W. H. Over Museum possesses the proprietary name of W. H. Over and the legacy

he left starting the museum. Founded in 1883, the W. H. Over is South Dakota’s oldest

museum. The museum also has ties to and information pertaining to USD, Vermillion, and

South Dakota acquired through the museum’s past. The W. H. Over also has acquired licenses

to possess items that the general public cannot own. All of these things proprietary to the W. H.

Over cannot be easily duplicated or obtained.

The museum has many historic items in its collection. The collection includes rare items

like Native American ghost shirts, an Egyptian mummy, and Oscar Howe paintings. The museum

has an extensive collection that would be difficult for any competitor to duplicate. Additionally,

the museum’s volunteers are dedicated and loyal. Both the collection and the volunteers would

be difficult for competitors to copy or imitate.

The museum’s current business model is not economically viable in the long term.

Although the museum has been able to survive on limited resources, it will be difficult for the

museum to survive into the future with its current business model.

Marketing and promotion are very important to the museum. If many in the target

market are unaware of the museum or what it offers, then it will be difficult for the museum to

20

successfully continue into the future. Most decisions to visit the museum are made based on

the museum’s marketing efforts. Poor marketing can drastically reduce museum visitors. There

are many other museums and entertainment choices potential customers can choose.

Marketing is needed to convince customers to choose the W. H. Over Museum over

competitors. Public relations are also important to the museum’s success. The museum relies

on volunteers, donations, and community support to survive. If support is lost, then the

museum will lose vital resources and be unable to operate. The museum has good relationships

with some community members and donors, which helps public relations. Lack of resources

makes it difficult for the museum to run a successful marketing campaign. A properly built

brand can positively increase awareness, reputation and visitors for the W. H. Over. The

presence of a W. H. Over brand will help the museum differentiate itself from the many

competitors.

Competitor

The W.H Over Museum’s main direct competitor is The National Music Museum. The

Music Museum poses a significant threat to the W.H Over due to a larger budget, state funding,

location, reputation, and extensive marketing efforts. The National Music Museum houses

world-‐renowned, rare items. Other direct competitors are museums in nearby towns like the

Sioux City Public Museum. Many of these competitors have larger budgets, greater marketing

efforts, and hands-‐on interaction with exhibits. Indirect competitors are anyone offering

entertainment or education to the area. Schools, documentaries, websites, and other

educational resources compete with the W. H. Over for customers researching the past. There

21

are few similarities between indirect competitors, because indirect competitors range from

sports events to online retailers selling educational resources.

Direct competitors often specialize in certain areas of history, like the National Music

Museum specializing in music and the Sioux City Public Museum specializing in Sioux City

History. The Music Museum charges ten dollars for admission. Other direct competitors like the

Sioux City Public Museum are free. Some direct competitors have larger exhibit areas featuring

more exhibits and many offer changing temporary exhibits.

Major competitors have paid full-‐time staff, larger budgets, more brand awareness, far-‐

reaching marketing strategies, and government funding. The Music Museum is currently

pursuing an aggressive marketing campaign to increase awareness and visitors. Many

competitors also have high-‐quality websites and modern facilities. One potential weakness of

competitors is specialization. Although specialization can also be a strength, specialization can

reduce potential customers in the market. An example of this is the Music Museum, which has

little appeal to individuals who are not interested in music.

It is unlikely that new direct competitor museums will enter the industry, because the

industry is already saturated. Some museum competitors might change business strategies and

begin competing more directly with the museum than before. New indirect competitors are

likely to enter the market offering new ways to entertain customers and possibly hurting the W.

H. Over’s business.

Customer

Current customers are tourists, school groups, and residents from the surrounding area.

School groups are from surrounding school districts and are usually fourth through eighth

22

grade. Tourists’ home cities vary from other countries, to the East and West coast, to

surrounding states. Most current visitors are light users, only visiting the museum once or

occasionally. Due to USD being located in Vermillion, a disproportionate number of teenagers

and young adults ages 15-‐24 are living in Clay County compared to other counties in South

Dakota (Brooks, McCury, & Hess, 2008, p. 56). The population of Clay County is 13,935 ("Google

Public Data," 2014). Tourist spending in Clay County during 2013 was an estimated $58,687,200

and average spending per visitor is $424 (Norton & IHS Global, 2014, p. 13, 49). The estimated

potential out-‐of-‐town visitors to the museum is 60,630*. Adding the local population and

visitors, the market the museum operates in has 74,565 potential customers. Most visitors to

the museum are interested in history and South Dakota’s past.

*(58,687,200 divided by 242) times 25% to account for noise in the data and non-‐relevant

visitors.

The decision to visit is made by different types of people depending on the type of

museum visitor. The decision for a family to visit a museum is made by a parent who sees what

the museum offers and then decides to bring the family. Once the initial decision for a family to

visit the museum is made, then the children affect how long a family stays and if the family will

return. If children enjoy the museum, then families may stay longer and may bring children

back for multiple visits. School administrators and parents make decisions to bring school

fieldtrips to the museum. Transportation to the museum for families is paid by parents.

Transportation expenses for school fieldtrips are paid by schools overseen by school

administrators. Individuals visiting the museum make the decision by themselves to visit and to

23

provide transportation expense to the museum. Visitors that enjoy their experience at the

museum may recommend that friends with similar interests visit the museum.

No specific target market is being pursued by the museum. A large portion of visitors are

school fieldtrips which visit the museum, but are not specifically targeted by the museum.

Otherwise, museum visitors are local residents and tourists from the museum’s market.

The W. H. Over Museum satisfies the customer needs of education, access to history,

and entertainment. The museum offers an opportunity to see items from the past and learn

about life during different periods in the past. Exhibits allow visitors to inquire and to answer

questions about Midwestern heritage. Visiting the museum allows customers to satisfy curiosity

about history, heritage, culture, and historic events.

Visitors to the museum are offered the ability to see historical items and learn about the

past. This offering is only available at the museum’s location on the edge of USD’s campus.

Customers gain what the museum offers when they enter the museum. Sometimes, customer

visits to the museum are done to complete a research project. Other times customers visit as

part of a group visit like a field trip or part of a vacation. Other customers’ visits are not in

conjunction with anything else.

Customers use the museum’s products and services by walking through the museum.

No admission is charged. Guided tours are offered to aid the customers in the use of the

museum’s offering. Pre-‐planned guided tours affect the number of visitors that visit the

museum at the same time and facilitates use for a large number of users at one time.

Disposal of items in the collection can be complicated. Rules must be followed to

manage the collection. The museum cannot turn around and sell items after donation.

24

Additional complexities are added, because part of the collection is owned by The State of

South Dakota and the other portion is owned by The Friends of the W. H. Over Museum.

Everything the museum offers to customers is only offered at the physical W. H. Over

Museum location. No intermediaries go between the museum and customers. All transactions

are conducted directly between customers and the museum.

No major identifiable trends are present towards museums offering products and

services in different locations or through different venders. However, some museums are

offering online content from the museum on websites, so customers can consume museum

product and services online through differing mediums like virtual tours, articles, and videos.

Customers can only use the museum and purchase items in the gift shop during regular

operation hours of 10:00 a.m. to 4:00 p.m. Monday through Saturday and when special events

are held. Special events are held throughout the year. These events have promoted the

museum in the community and have brought in new customers who might not otherwise visit

the museum. A few temporary exhibits are available at the museum to the public throughout

the year. These temporary exhibits encourage some first-‐time customers to visit and current

customers to revisit the museum.

Customer groups visiting the museum change throughout the year. From fall until

spring. many school groups tour the museum. When school recesses for the summer, then

more vacationers and tourists visit the museum. Area events also affect museum attendance.

Some visitors to Vermillion for events visit the museum while in town.

Customers decide to visit the museum after hearing about it through word of mouth or

viewing the museum’s brochures, advertisements, website and/or social media. Decisions to

25

visit are then made based on how the customer perceives the museum. If the museum interests

the potential customer and/or satisfies a need, then the decision is made to visit. Some visit the

museum while in town to see other attractions. Some vacationers make decisions to visit after

seeing signs along roads.

Variety in the museum’s wide collection is greater than variety in many competitor’s

collections. Additionally, rare items are exhibited at the W. H. Over that other competitors do

not have. Personal tours are available at the W. H. Over Museum upon request, an option not

offered by all competitors. Customer needs of access to historical items, education, and

entertainment are met by the museum. By allowing visitors to see real historic items, a more

personal connection in made between the visitor and history—better than other forms of

history education offered by indirect competitors. Additionally, there are more local Vermillion

and South Dakota items in the museum’s collection than most competitor’s collections.

Entertainment offered by the W. H. Over Museum is slower paced than other forms of

entertainment, but some visitors prefer slow-‐paced entertainment to contrast with fast-‐paced

life. No admission is charged at the W. H. Over, potentially making it more attractive to

customers seeking low-‐cost options. The museum is group friendly and can make

accommodations to facilitate group tours.

Brand loyalty is important in the museum industry. Dedicated loyal museum customers

will visit museums multiple times, bring friends and family, support through donations and

volunteering, and recommend the museum to others. If a museum can establish and maintain

ongoing relationships in the community where it operates, it is more likely to have loyal,

supportive customers.

26

Many potential customers do not attend the museum, because they are unaware of the

museum’s existence or what the museum offers to satisfy needs. Some non-‐customers prefer

and need museum operating hours on Sunday, which the W. H. Over Museum does not offer.

Other non-‐customers want multi-‐media technology incorporated in museum exhibits, which is

not done at the W. H. Over. Some non-‐customers need interactive museum experiences to stay

engaged in exhibits. Permanent Exhibits at the W. H. Over Museum are not interactive and do

not meet some non-‐customer needs for interaction.

Some non-‐customers prefer the hands-‐on interactive museum experiences offered by

competitors. Other non-‐customers like longer hours offered by competitors. Still others prefer

the content and the location of competing museums. A combination of these and other factors

cause non-‐customers to not visit the museum.

No admission is charged to museum visitors. This no charge policy allows visitors access

to history in an inexpensive way. However, when something is offered as free, it can have a

stigma that follows the idea of free. Regardless of actual quality, products offered as free are

perceived as lower quality by potential customers and some potential customers do not

perceive free as worth their time. W. H. Over Museum advertising efforts do not convey a clear

message of what the museum offers. Additionally, the museum’s logo is not used on all signs

and advertising. Because of this, there is no brand established for the museum. Potential

customers do not have a clear idea of why the W. H. Over Museum exists and what value a visit

offers. Promotion is not extensive enough to gain the awareness of other potential customers.

Not all promotion of the W. H. Over contains a museum logo. This lack of a logo makes

promotional efforts look less professional and makes it more difficult to identify W. H. Over

27

Museum advertisements. Most signage throughout the museum is not professionally created,

aging, and does not highlight important rare items properly. Additionally, some museum

signage on exhibits is difficult to read. Because of these two reasons, some customers and non-‐

customers view the museum as a lower quality museum.

Most customers in the museum’s market currently do not visit the museum. Many are

unaware of the museum and what the museum offers. These facts mean that there is great

potential for converting non-‐customers into customers of the museum. There is great potential

for the museum to increase visitors through further penetrating the market the museum

operates in.

A key benefit the museum offers customers is access to an extensive collection of South

Dakota’s past. Visiting the museum allows customers to learn about the area’s past in ways that

visitors cannot experience on their own. Additionally, the museum benefits customers through

entertainment. Customers can be entertained while visiting exhibits and exploring the past.

Market Attractiveness/Competit ive Posit ion Matrix Figure

28

Performance Review

The museum’s current marketing plan has not been effective in bringing in visitors to

the museum. From 2012 to 2013, estimated visitors of the museum dropped by almost one

thousand from 9,583 to 8,589 in 2013 (Johnson et al., 2014, p. 14). The awareness, profitability,

and brand preference of the W. H. Over Museum are lower than competitors like the Music

Museum who are running aggressive advertising campaigns, which the W. H. Over Museum

does not have a budget to match. Tourism spending in South Dakota and Clay County has been

increasing (Norton & IHS Global, 2014, p. 17, 49).

One reason that the W. H. Over Museum’s advertising has not been successful is that

the advertising lacks a clear brand of what the W. H. Over offers and does not reach enough

potential customers. When potential customers hear the W. H. Over name, there is not a clear

message of what the brand means and what the museum offers. Additionally, the W. H. Over

lacks resources to run large advertising campaigns like some competitors.

29

Key Issues

SWOT Analysis

Strengths

Volunteers are dedicated to the museum and excited about the part they play in the

museum’s survival. Many volunteers are knowledgeable in areas needed to run a museum. The

museum is located on the edge of USD’s campus, making it close to major events at USD and

the Dakota Dome. Many donors are long-‐time supporters of the museum. No admission is

charged to visitors, providing an affordable offering to visitors. The museum’s collection has

30

many rare items and has a wide variety of items. Many individuals in the community support

the museum through donating money and supplies.

Weaknesses

No written goals and objectives are followed to guide the museum. Financial resources

are low for the museum and not enough to keep the museum running long term. Most human

resources are volunteer, which can decrease what the museum can do through its human

capital. There is no visitor interaction with main exhibits, which makes the museum less

appealing to children, families, and visitors seeking entertainment. Little emphasis is placed on

the marketing function of the museum. Collection items vary so much it can be difficult for the

museum to keep certain themes throughout the museum. Most of the consumers in the

museum’s market are untapped, not visiting the museum and not aware the museum exists.

The museum does not match quality and promotional elements of competitors like the Music

Museum. Free admission sends a message to some potential customers of low quality. The W.

H. Over Museum name does not convey a message of what the museum offers. Many potential

customers are unaware the museum exists. Not many temporary exhibits are displayed at the

museum throughout the year.

Opportunities

A large number of students attend USD and could be targeted by the museum.

Technology could be integrated into the museum to make it more attractive to some customers

and more interactive. Social media could be utilized to build awareness and establish

31

relationships with customers. Interactive exhibits could be used to keep museum visitors more

engaged in the museum experience. South Dakota and Vermillion have an improving economy

and that brings more potential dollars in the community that could be spent at the museum.

Events are held in Vermillion and the surrounding community that bring in many tourists to the

area. Sletwold Hall could be used as an event room for both museum and outside events to

increase museum visitors. The museum could target the Music Museum customers to convince

Music Museum visitors to also visit the W. H. Over Museum while in town.

Threats

If consumers become used to technology integrated into museums and the W. H. Over

Museum does not integrate technology into exhibits, then there is potential for lost customers.

Aggressive marketing campaigns by competitors can cut into the museum’s market share. If the

state continues to not fund the museum, the museum will continue to have to seek funding

from other sources. If social media is not utilized or managed poorly, customers can be lost. If

the Music Museum and other competitors continue to improve, the W. H. Over Museum could

get left behind and become obsolete. The traditional museum experience could become less

appealing to customers.

32

Opportunities and Threat Matrix

1. Technology integration in exhibits becomes common and expected by consumers in the

museum industry.

2. USD Students could be attracted to visit the museum.

3. Social media will either help or hurt the museum.

4. The number of W. H. Over Museum visitors is decreased because interaction with the

exhibits is desired but not offered.

5. South Dakota’s economy will continue to improve and bring additional money into

Vermillion.

6. Vermillion events can bring in new museum customers.

7. Event room could attract additional museum visitors.

8. Music Museum visitors could be convinced to visit the W. H. Over Museum while in

Vermillion.

9. Lack of technology integration in exhibits reduces W. H. Over Museum visitors.

10. The museum could continue to not receive state funding.

11. The Music Museum and other competitors could continue to grow and start taking visitors

away from the W. H. Over Museum.

33

12. Traditional museum layouts similar to the W. H. Over Museum will become unpopular with

upcoming generations.

Analysis

The museum can use its location and wide collection to attract various event attendees

from around Vermillion and the Dakota Dome to visit the museum. The event room could be

used to house temporary exhibits from the museum’s collection. USD students could be

reached by exhibiting USD historical items at the museum’s location on the edge of campus.

Community support could be paired with social media to promote the museum.

The museum can establish a competitive advantage by combining its wide collection and

its location on USD’s campus next to the Dakota Dome. By combining these factors, the

museum should be able to provide a tailored exhibit experience to local events attendees that

will be difficult for competitors to copy. Additionally, the dedication and friendliness of

volunteers provides exceptional customer service that would be difficult to copy.

Untapped potential customers can be reached, which would convert a weakness of the

museum to a strength from the new customers. The strength of competitors can become a

strength of the W. H. Over Museum by pursuing a “come see us too while in Vermillion”

strategy. Clearly defined, written, and followed plans and goals can help the museum overcome

weaknesses and threats from: lack of goals and objectives, lack of human resources,

competitor’s aggressive marketing, ineffective use of social media, competitors, the eclectic

collection, too few temporary exhibits, the Music Museum, ineffective marketing, and the

museum’s name. Lack of technology integration, exhibit interaction, and traditional museum

34

appeal issues can be overcome by integrating interaction and technology into museum exhibits.

The stigma of low quality that follows free admission can be overcome by charging admission to

the museum.

If the museum does not receive state funding and no additional financial resources

become available, then troublesome issues may become apparent to customers. If not enough

money is available for exhibit design, exhibit upkeep, and building maintenance, it can convey a

low quality message to customers and make visits to competitors more appealing. If technology

and interaction is not incorporated into the experience of visiting the museum, then the threat

of becoming less appealing due to a loss of interest in traditional museums similar to the W. H.

Over is heightened.

The museum can gain financial resources from outside donors to update and improve

the museum’s exhibits. If more money becomes available, promotional activities could be

increased and improved to better compete with competitors. By gaining additional financial

resources, the museum can better serve and meet consumers’ needs.

The museum should pursue a turnaround strategy to recognize the weaknesses of the

W. H. Over and then work on improving weak areas while looking for external opportunities to

reach new customers and encourage current customers to visit more often. Currently, the

organization’s strategic thrust does not provide focus and divergence from other organizations

in the museum industry.

35

Value Curve

*Value curve based on best estimates.

Marketing goals and Objectives

Goal: Increase the number of museum visitors.

Objective: Increase museum visitors by 10% per year for the next five years. The Board of

Directors is responsible for achieving this. See profit/loss statement for budget.

Marketing Strategy

The museum should pursue a differentiated defender strategy to offer a quality product

and service to customers and work to not lose market share. The museum should further seek

market penetration to gain new customers, while encouraging current customers to revisit the

museum.

36

Action Plans

The museum should continue to reach the whole mass market and focus on attracting

tourists and commuters traveling along Highway 50 and I-‐29. The most important consumer

need that the museum is able to satisfy is a quality educational experience pertaining to South

Dakota. Tourists and commuters traveling along Highway 50 and I-‐29 commonly make decisions

to visit the museum based on signs, while others make plans to visit the museum in advance.

The psychographics of a potential visitor to the museum include consumers who are interested

in learning and history and consumers who are open to new experiences. Depending on a

specific visitor’s lifestyle and stage in life, they could be family oriented, individualist, or career

oriented.

37

Anticipated Value Curve

Value curve based on best estimates.

Positioning Statement

The W. H. Over Museum offers South Dakota residents and tourists a low priced

educational experience.

Value Proposition

• Target Market: Mass market with a focus on Highway 50 and I-‐29 tourists

• Benefits Offered: Education and Entertainment

38

• Price Range: low, $5 suggested donation for one-‐time admission, free for students and

children, $50 for a yearly membership

The museum should be renamed “The W.H Over Museum of South Dakota Heritage”. A

new logo should be used on all advertisements, signs, and promotional material for the

museum to create a recognizable brand (see potential logos on next page). Most exhibits in the

museum should in some way relate to South Dakota Heritage. The following new mission

statement should replace the old one, in order to guide the museum’s operations and exhibits:

The W. H. Over’s mission is to preserve and exhibit South Dakota historical items to provide a

quality educational resource for South Dakota residents and tourists. Temporary exhibits

should be created that are themed to different events in the community (for example, an

exhibit on South Dakota farming history during the nearby annual Farm Show or an exhibit

highlighting USD history and memorabilia during Dakota Days). The museum should continue

offering tours upon request. Exhibits should be reorganized and signage updated to highlight

rare and special items (for example, Oscar Howe items should be grouped together and

prominently displayed with a description of Oscar Howe and his connection to Vermillion).

39

Logo Options:

40

ii Students should receive free admission and a suggested donation of $5 for admission

should be communicated to customers. Additionally, a yearly membership of $50 for unlimited

admission for two people to the museum for one year should be offered. W. H. Over pricing will

be lower than many other competitors’ prices (Music Museum: $10), but higher than some

(Sioux City Public Museum: free).

iii There should be a sign positioned along Taylor Street in front of the museum that clearly

states that the parking lot is available for free to visitors of the W. H. Over Museum. Currently,

the parking situation is confusing. It would be beneficial to put up a sign in front of the museum

specifying where customers can park.

iv The museum should use a common logo and font on all advertising, promotions and the

website to create a recognizable brand. Multiple signs should be placed along Highway 50 and

I-‐29 to attract visitors and make people more aware of the museum. The museum should

purchase an ad placement in the Dakota Dome. A digital sign on the ProAD LED (ribbon board)

costs $3,500 annually. This advertisement would run at all paid events and could be very

beneficial for attracting visitors due to the close proximity of the Dome and the museum (T.

Lee, personal communication, November 20, 2014). The museum should create special

temporary exhibits that complement events in Vermillion. These exhibits should be advertised

to event attendees in order to persuade them to visit the museum while they are in town (for

example, advertise at the annual Farm Show the museum’s nearby temporary exhibit on farm

history or a temporary exhibit showcasing USD memorabilia and history during Dakota Days

and other USD functions that attract many USD alumni).

41

Organizational Chart

There is a gap in the organizational structure: noticeably a lack of a marketing

department. In order to fill this gap, the position of a volunteer marketing director needs to be

created.

42

Punch List/Budget

Task Due Date Person Budget Change the Museum’s Name March 1, 2015 Board of Directors $0 Select New Logo March 1, 2015 Board of Directors $0 Logo on all Museum Publications May 1, 2015 Board, Marketing Director $2,500

Better Utilization of Exhibits Bi-‐annually Board, Collections Director Labor Costs

Implementation of Entry Fees June 1, 2015 Board, Desk Clerk Surplus New Parking Sign June 1, 2015 Board, Grounds Keeper $250 Signs on Highway 50 and I-‐29 July 1, 2015 Board of Directors $10,000 Advertisement in Dakota Dome May 1, 2015 Board of Directors $3,500 Appoint Volunteer Marketing Director April 1, 2015 Board of Directors $0 Complete Quarterly Audits June 1, 2015 Auditor $0 Update Exhibit Signs June 1, 2015 Board, Marketing Director $7,500

*Amounts based on best estimates, actual amounts may vary.

43

Projected Profit and Loss Statement W. H. Over Museum

Expected Profit/Loss Statement For the Coming Year 2015

Expected Revenue Visitor Suggested Donations $ 15,000 Yearly Memberships 2,000 Total Revenue $ 17,000

Expected Expenses Road Signs 10,000 Dakota Dome Advertising 3,500 Exhibit Signage Update 7,500 New Logo Integration 2,500 Parking Sign 250 Vermillion Event Advertisement 4,000 Survey Gifts 2,000 Total Marketing Plan Related Expense $ 29,750 Additional Funds Needed for Plan* $ 12,750

*Amounts based on best estimates, actual amounts may vary.

*Additional funds will need to be raised from museum donors.

Formal Controls

The museum should have five input controls that need to be performed before

implementing the marketing plan. Input controls are resources that are needed for

implementation of the marketing plan. First, the Board will assume the role of a Human

Resources Department in order to find and appoint a volunteer marketing director. Finding and

appointing a marketing director will require defining the role the director will perform and also

taking part in the hiring process. The Board will also need to appoint someone to an audit

position in order to conduct consistent performance reviews and audits.

44

The next input item will be to have the front desk clerk accurately record the number of

visitors to the museum. This data will be utilized by the museum for further marketing efforts.

In addition to recording visitor numbers, the desk clerk should encourage signing of the guest

book to gain information on distance traveled, how visitors learned about the museum, and

visitor comments. An additional input item will be to update all exhibit signs throughout the

museum. This will ensure visitors have a better experience and absorb as much knowledge as

possible. The next input item will be to select and distribute a new logo. This new logo should

be placed on all signs, flyers, and museum publications. The final input item will be to distribute

surveys to customers in order to gauge satisfaction or dissatisfaction along with perceptions of

the museum. Individual customers will be offered a small gift for filling out a survey. Surveys

should include a place to provide name, address, and phone number and a place to check if

interested in receiving mailings from the museum.

In order for each one of the input controls to be executed, a series of process controls

must be carried out. Process controls are actions that need to be taken to effectively

implement the marketing plan. First, for the Board’s role in appointing a new volunteer

marketing director and appointing an auditor, the process with include outlining the job

specifications, searching for potential candidates, interviewing interested parties, making a hire

and ensuring both the marketing director and auditor are properly trained and acclimated in

their new positions. This new marketing director should also be sent to a marketing training

program to gain marketing skills and knowledge. The board will also need to decide whether

this volunteer position will be full time or part time.

45

The next process control is the front desk clerk recording all visitors and encouraging

them to sign the guest book. The process includes ensuring the clerk has the proper materials

and training in order to track visitors. There needs to be a data-‐management system in place so

that the information can be easily accessed and reviewed at a later date.

To update exhibit signage throughout the museum, a material needs chosen to make

new signs. The material needs to be durable and professional looking. New signs need to be

easy to read, professionally generated, and convey appropriate information. Signs need to

highlight rare, famous, and interesting aspects of exhibits to convey exhibit importance to

visitors. Signs need placed on all exhibits in easy to find and read locations, placed so both

adults and children can readily see the information.

The next process control is choosing and implementing a new logo. The first step for the

Board is to review and to choose one of the suggested logos provided above or another

professionally created logo. Then, the Board will need to work with the newly appointed

marketing director to ensure that this logo is incorporated into all signs, advertisements, flyers,

brochures, and other publications (excluding signs on exhibits). Additionally, the logo will need

to be incorporated into the museum’s Facebook page and website.

The last process control is distributing surveys to museum visitors. To complete this

process, it is necessary to create, print, and distribute surveys to museum guests. Each guest

will be given a survey at the end of their visit to the museum and offered a small, inexpensive

gift for completing and turning in the survey. The gift should be mentioned as the survey is

offered, should be prominently stated at the top of the survey, and should be displayed by the

available surveys. This gift to survey respondents should prominently display the museum logo

46

on it to further advertise the museum to the visitor and others. (One example would be to have

a coffee mug with the W. H. Over Museum’s new logo printed on it for adults, one per

household, and a bookmark containing the logo for visitors under the age of 18.) After the

completed surveys are received, the responses must be compiled into a database for future

review and use.

The final step in implementing the marketing plan is to create output controls.

Output controls are used to measure the success of the marketing plan. In order to track the

success of the museum, the Board assumes a human resources (HR) role, measuring the on-‐the-‐

job success of the new marketing director and auditor to track output. A clear goal for the

Board and the marketing director is to create and implement a marketing plan for the museum.

For the auditor, a control output is performing a quarterly audit, compiling relevant data, and

comparing that data against objectives. The marketing director and the auditor should work

together to perform marketing audits. The recorded data about visitors and surveys should be

reviewed and utilized to make future marketing decisions. Once signage is updated in the

museum, tracking survey responses will help see if the changes were successful. Output control

for the new logo will be to see that it is properly placed on all appropriate materials. Finally, a

control output needs to be created based on survey responses, by reviewing the responses and

making appropriate changes based upon analyses of survey results and the operating

environment of the museum. Surveys need to be distributed on a consistent basis in order to

track the satisfaction of museum visitors.

Completing these five tasks will not require excessive amounts of financial capital. New

positions will be filled with volunteers. Tracking the number of guests visiting the museum and

47

distributing and collecting surveys will be done by the front desk secretary. Additionally, the

front desk secretary will collect the suggested donation from museum visitors. Temporary

exhibits and signage updates will be completed with museum volunteers and employees.

Additional funds needed to implement the marketing plan will need funded through the

donations to the museum. Gifts for completing surveys will be five dollars or less per gift. Not

all visitors to the museum will complete surveys. Proposed logo options provided were donated

free of charge by a professional graphic design artist. Implementation of this marketing plan

should increase awareness of the museum, increase the number of museum visitors, and

increase customers’ perceived quality of the museum.

Informal Controls

Self-‐control Issues

Board members, volunteers, and employees need to have the importance of change for

the museum’s future success communicated clearly to them to create openness to change and

cooperation to achieve goals. This communication process should improve self-‐control and

commitment of individuals working for the museum. The goals given to the employees need to

be clearly communicated and enforced. In order for the employees to be satisfied, the

employees need to understand their role in the implementation process to ensure the new plan

will be effective. A clear vision of what the museum is working towards needs to be articulated

to all volunteers and employees to increase support for the plan.

Employees must be satisfied with the new jobs that they are given. Employee

satisfaction plays a huge part in self-‐control. If employees do not agree with or do not like the

48

new jobs that they are assigned, they will not perform at the highest level. In order to prevent

problems, a Board member needs to be designated as a liaison to convey employee and

volunteer concerns to the Board.

Social-‐control Issues

Social-‐control plays a big role when implementing a new marketing plan. Relations

between employees, volunteers, and the Board need to be cultivated and managed to make

sure that the end goal of keeping customers satisfied is achieved. Most W. H. Over Museum

volunteers and employees work together well. However, there is some tension between

individuals within the organization based upon mismanagement issues, most notably between

the gift shop manager and the Board. It is important that the Board communicates effectively

with all volunteers and employees to facilitate social-‐control within the organization.

Cultural-‐control Issues

Regarding cultural control that influences implementation of the marketing strategy, the

Board needs to make sure that the organizational culture and the organizational rituals

positively correlate with the new marketing strategy. All employees need to be willing to adapt

and to promote the new marketing strategy. The current culture of the organization is such

that the employees and the Board do not feel comfortable being forthright about pertinent

issues. The group must be willing to bring new ideas to the table without fear of hurting

someone's feelings. The W. H. Over Museum must also make sure that they have a clear

organizational structure, where everyone’s roles are clearly defined and that there is

accountability among co-‐workers.

49

Marketing Audits

The W. H. Over Museum should conduct an initial audit at the beginning of the quarter

after the implementation of the new marketing plan. Also, at this time the museum should

conduct an employee survey to identify HR issues that need addressed.

In order to monitor marketing activities, an internal audit must be done quarterly.

During marketing audits, the auditor should work with the marketing director to compile data

and compare it to the objectives of the museum. If the marketing strategy does not meet

expectations, it is up to the Board to collaborate and to revise the marketing plan where

necessary. If the marketing plan is not meeting objectives, reconsidering the pricing structure

would be the first step. If the pricing strategy is not working, the W. H. Over Museum can lower

admission prices or remove the fee altogether and instead focus on donations.

Implementation Schedule and Timeline

50

Contingency Plan

If tourism drops in South Dakota, the museum should try to reach local residents,

including but not limited to USD students, and consider new uses for Sletwold Hall. The

museum could also expand the geographic region of their target market by advertising farther

out to become more recognized. New events could be held throughout the year to attract local

residents to the museum.

51

References

Brooks, T., McCury, M., & Hess, D. (2008, May). South Dakota state and county demographic

profiles. South Dakota State University.

[Google public data]. (2014, September 19). Retrieved November 24, 2014, from Google

website:

https://www.google.com/publicdata/explore?ds=kf7tgg1uo9ude_&met_y=population&id

im=county:46027&hl=en&dl=en#!ctype=l&strail=false&bcs=d&nselm=h&met_y=popul

ation&scale_y=lin&ind_y=false&rdim=country&idim=county:46027&ifdim=country&hl

=en_US&dl=en&ind=false

Johnson, M., Bradley, L., Coker, H., Powell, J., Muller, L., Lawler, M., . . . Wurtz, K. (2014,

January). 2013 annual report to the Friends of the W. H. Over Museum (S. Anderson,

Ed.).

Lee, T. (2014, November 20). RE: Advertising question [E-mail to Ryan McCarty].

Montgomery, D. (2013, June 13). S.D. GDP gets boost from agriculture, health care. Argus

Leader. Retrieved from http://www.argusleader.com/story/news/2014/06/12/sd-gdp-gets-

boost-agriculture-health-care/10380627/

Norton, S., & IHS Global. (2014, January). 2013 tourism satellite account [PDF]. Retrieved from

http://www.sdvisit.com/tools/research/_pdf/13TSA_GlobalInsight.pdf

Saint Louis FED. (2014, July 7). Per capita personal income in South Dakota. Retrieved

November 29, 2014, from FRED Economic Data website:

http://research.stlouisfed.org/fred2/series/SDPCPI

Date post:	18-Jul-2015
Category:	Documents
Upload:	ryan-mccarty
View:	65 times
Download:	0 times

Marketing Plan Final Draft 12-3-14

Documents