Relationship management for a cultural institution: the case of the out off theatre

Marketing theory assigns increasing importance to Customer Relationship Management considered to be the base to create economic value for a firm’s future success. In general, a firm who is able to manage its different relationships is more likely to succeed in the market gaining competitive advantage over competitors now and in the future. As far as cultural industries the prospective is different. Although is broadly known that cultural firms need to interact with different stakeholders and to create network with multiple markets (among which the most important are sponsors, distributors, audiences, gatekeepers, city policy makers, general community in which it is located, Government, Local Authorities, competitors), relationship marketing approach is not often taken into consideration. This work, though, wants to understand whether an approach based on relationship management can be used for cultural firms which have to deal with several markets and being able to cope with various, interdependent stakeholders. In order to answer the research proposition, an exploratory analysis was undertaken. The use of a case study enables to apply different research techniques either quantitative (surveys, document analysis, data elaboration) or qualitative (introspection, immersion, focus group, direct observation, interviews) and, thank to data triangulation and internal data, obtain exhaustive elements to deepen the study. The investigated cultural institution is the OUT OFF theatre in Milan. It is an experimental theatre with a strong image and a defined position on consumers: its distinct characteristics, which reflect the precise mission of the institution, put it in a niche of the market creating sometimes difficulties in appealing all the different markets the theatre needs to deal with. Therefore, the theatre struggles everyday to survive and to gain a position which could let it to be considered either by the general public or by the different players on the market. Managing simultaneously different relationships would be a profitable way for the theatre to survive in the market and create value to transfer to its stakeholders. It means: obtaining references from the journalists and more results in terms of public, being able to negotiate more funds from the Local authorities and the Government, achieving good results on fund raising and donations and, above all, gaining a positive attitude from the consumers. Different tools to accomplish these goals are illustrated according to the specific market analyzed. This is why, the theatre could benefit from an approach based on relationships marketing. In conclusion, the case analysis underlines the specific characteristics of the application of a customer relationship management approach to cultural firms. In particular, it suggests to enrich the traditional prospective and focusing on relationships with multiple stakeholders rather concentrating only on customers. The cultural firms have to pay attention to the synergic interactions that might occur between these relationships as a potential risk but also as a great opportunity.