Some observations concerning the future of the AES.

(Preliminary version)

 

Management summary.

We, as the board in the Netherlands, feel the need improve the status of the AES.

From different directions we get the indications that the AES can mean more for the Audio business. We have also the feeling that the number of members can be enlarged by a strong promotion of the excellent goals of the AES as given in the bylaws.

 

The AES has a view on a tremendous lot of audio related information!

In order to strengthen the promotion, the AES should make this information available by the creation of a search engine on the AES website for:

á      paid and unpaid information that is laid down in old and contemporary papers,

á      research and development projects,

á      people,

á      all kind of audio related subjects,

á      products (hard- and software) and companies,

á      student organizations and jobs.

This is completely in compliance with the bylaws of the AES. This brings people together. Besides that, tutorials are needed; the audio sciences diverge to specialisms. AES can help to converge to more general knowledge! Knowledge is an expensive goods. We experienced that one is willing to pay for tutorials!

We think this brings a strong promotional effect.

 

With the use of the conventional marketing subjects, we like to illustrate our idea's about the future of the AES in general and the sections in particular.

 

1.     Policy

á      Goal(s)

The goals of the AES are given in article I of the bylaws:  "É..uniting persons performing professional services in the audio engineering field and its allied arts, of collecting, collating and disseminating scientific knowledge in the field of audio engineering and its allied arts, of advancing such science in both theoretical and practical applications, of preparing, publishing and distributing literature and periodicals relative to the foregoing purposes and policies."

á      Finance(s)

Most of the costs are covered by the convention exhibitions and the memberships. Most of the costs are generated by the boards as well by the head quarters and the local (section) boards. This is a very generalizing remark. Details will be presented by the treasurer.

Knowledge is a very costly factor. The AES cheaply provides knowledge to its members and associates. 

 

2.     Marketing Mix

In this chapter we will try to analyze by the hand of the marketing mix what the value of the AES may be for the members.

á      Product(s)

The meaning of the AES mainly concerns the conventions, the conferences and the local section meetings and, of course, the memberships with electronic or physical journals.

The essential products (services) for mentioned events are the papers, the workshops, the posters, the standards meetings, the tutorials, the technical tours and the exhibitions. All information in these items is of a great value in the form of booklets or electronic information on the internet.

á      Price(s)

The prices are, according to our observations, low. To give an example: the allowance to present a paper in conventions of other organizations will cost you money. The memberships will also cost more than that of the AES.

á      Promotion(s)

The promotion is felt to be poor. A lot of companies have never heard of the AES although they work in the field of audio. It is not known what the added value is of the membership. Balloting may be felt as negative promotion.

á      Place(s)

It is an advantage that the AES is organized world wide. By the division in sections the coverage of the AES can be intense. But that is not everywhere the case; the section boards shall be more active.

á      Service(s)

The services are also felt as being poor. This can be the consequence of the unacquaintedness of the AES.

Note: it is not known by us if and how many sponsors offer their support to the AES.

 

3.     Markets (target groups)

By the hand of the division into "top", "middle" and "low end" markets we try to give form to our observations.

á      Top

The top market is covered by high quality knowledge and far-reaching research and developments at one hand and at the other hand by top class hard and soft ware. Concerning the knowledge, remarks can be heard that there is a too big gap between the standard of the presentations (papers) and the level of the personal knowledge of the present subject. Tutorials and "market places"*) may bridge these gaps. See also the opportunities. The Internet covers more and more the high end knowledge. See also the threats.

Concerning the top hard and soft ware can be said that these products have a very specialist character with applications in a small - in terms of numbers of visitors in the AES conventions - but powerful - in terms of money - market e.g. the broadcast, the movie, the internet, the high end consumer and related markets.

Besides that, the products are mostly presented in specialist exhibitions. One gives a lot of effort to the improvement of the knowledge and the standards in order to stay competitive.

á      Middle

The middle market is often used by companies for a down grade of the hard and soft ware of applications in the high end market. But sometimes, the upgrading of the products of the low end markets offers the opportunity to a relative reduction of the production costs of the hard ware (e.g. IC's) and soft ware by the law of  "big numbers". The philosophy is to create a more and effective turn over due to division of the cost of the needed knowledge over a large number of products. This results in easier to apply equipment. As a whole, these markets create more money than the high end markets. Lowering the cost for the knowledge may be a threat for the AES. Or is it an opportunity to collect knowledge of a lower level in order to be able to understand the 'high brow' knowledge in a later moment? Besides that more companies are active in this market section.

á      Low

The low end market is characterized by numerous easy to produce and to use products with relatively low prices. Here, the production methods and costs fulfill a central role. So the knowledge has its heavy point in the production sector. It is the question if the AES can play a role here.

*) A "market place" is a room where presenters, scientists and visitors can meet and discuss matters concerning the presented or related subjects.

 

4.     Swot (strengths, weaknesses, opportunities and threats) analysis

á      Strength(s)

One of the strengths of the AES is its world wide reach. An other strength is the work by the standardization and technical committees. The AES standards are recognized as independent standards or are combined with other standards.

The AES is known by most universities and scientific institutions. From there, a positive radiation can be activated in the direction of the students, our future. The AES covers a lot of knowledge and expertise. The AES has contacts.

á      Weakness(es)

One of the weaknesses is the lack of promotion to the mid-end sectors. It is not known in the world what the AES can mean to the audio fields for those who are working in the smaller businesses.

á      Opportunities

The AES has a tremendous lot of knowledge in its midst! This may be a challenge to use and to spread this knowledge to the members and future members in a protected way. In order to do so, this knowledge must be presented in a rather simple way e.g. by means of tutorials; not only during the conventions but also by means of tutorial sessions organized by the sections. Within the sections, people may be able to perform these presentations. If not, one can make use of the invited speakers program (this is not sufficiently promoted).

A second opportunity is as follows. When a speaker has presented his paper or tutorial, the listeners and visitors must be given the opportunity to exchange thoughts after the presentation. The AES should convince the presenters to stay any longer in a sort of "market place", as mentioned before, where people can meet and make contact in an easy way; in a sort of reception style. This happens already in the workshops in a certain way but more closer in the poster sessions.  Here, the personal contact is optimal. This puts a strong basement under article I of the bylaws.

á      Threat(s)

Threats may be turned into opportunities.

There is a great lack of  promotion, as said before. Perhaps, the membership costs are too low: the AES will not be recognized as a high professional society.

We advice to execute a deep investigation in the so called price elasticity: the ratio between number of members and the price of the membership.

The internet and the ICT form an other big threat. A lot of audio related knowledge is published on the internet. People may ask themselves: why should I go to a convention or conference while I can find the information on the internet. We think: if you can not beat them, join them! So, why not publish the older papers on the internet with full information about the source. Perhaps, the presenter(s) may be pleased. This may generate contacts. More recent papers can be published on the internet under password protection. The passwords must be bought (by a membership). The abstracts must have an inviting character. This is an opportunity. This creates an extra opportunity: promotion for the AES.

 

5.     Marketing Strategy

á      Penetration in existing and future target groups

The penetration must start in the student sections. There is an upswing of student activities when a convention is planned in a certain country. The student activities should be more constant. Professors, teachers and mentors must be constantly informed about the essence of the AES and, as the consequence the chances that will be generated for the future of the students (e.g. jobs).

A second target group is the smaller business. People working in that sector do not have the time to enlarge their general audio related knowledge. Just by means of this knowledge one can explore new fields and feel that the conventions and conferences add basic information. More promotion must be given to tutorials.

Promotion is again the magic word: untold is unsold.

á      Development of new products c.q. services by the AES

As said before, older papers and information (anthologies) may be put on the internet for free. Recent information must be bought via the internet; one has to become a member! The promotion is done by means of the publication of the abstracts. We assume that watermarking of the information is a possibility to protect the info against misuse.

á      New target groups

Soft ware and related hard ware (ICT) producers form the new target groups. The AES could move itself more and more in that direction and of the movie sector looking for co-operation. To give some examples: TV program makers and TV promotion makers and distributors make more use of audio tricks to expand or compress audio signals in order to get more attraction (or hindrance).

Life sound producers, dj's and mixers should know more about the hearing especially about damage and protection.

Dj's, restaurant, disco and cafŽ holders should know more about sound hindrance and how to avoid this. Tutorials about the hearing, acoustics and the local laws are necessary. The same is more valid for the deliverers of the audio equipment for this sector.

á      Diversification -> New services in new groups.

From the foregoing can be concluded that the information as described in the chapter about new services must be made available to the new target groups. Normally diversification costs a lot of effort. This is not the case here because the information is there and the target groups will be found as shown before.

 

6.     Conclusions and recommendations

Summarizing:

 

 

 

 

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May, 2005.

Respectfully submitted,

Peter A. Swarte, governor and chair of the NL-section.