Arts organizations have experienced significant changes in the behaviors of their audiences and the market in recent years due to circumstances such as the decrease of leisure time, the growth in the number of non-profit arts organizations, and the development of the technology. As a result, arts organizations are facing greater competition to attract patrons. This situation is most obvious in big cities with numerous arts organizations and with relatively educated and mature audiences.
When organizations recognize the changes, they investigate their situations to identify specific challenges. Often, they are faced with developing new or altered programming that better meets the changing needs and tastes of the audience. This procedure is called product differentiation. It is a commonly employed method to maintain current position in the market or to develop a position in an existing mature market.
The goal of this study is to understand a theory of product differentiation and learn how arts organizations utilize the theory with an analysis on the case of VIVA! & Gala Around Town Series of the Cleveland Museum of Art. Cleveland in Ohio has been a city with a long history of supporting the arts. In this competitive arts market, the Series has been successful in attracting audiences even when faced with the challenge of losing the use of its venue while the museum was under renovation and expansion. The case study of VIVA! & Gala Around Town Series will provide a good example of product differentiation, mainly in programming choices.