CHAPTER 9Marketing Entertainment

SWBAT:

Explain customizing entertainment products for a market segment

Describe customized entertainment marketing for Baby Boomers

Essential question: Why would companies want to customize entertainment for customers?

9.1 - CUSTOMIZED ENTERTAINMENT

Market Segment- a group of people who have the ability and the desire to purchase a specific product

Develop the marketing mix

Step 1: Collect marketing information about the largest

market segment for that product

Step 2: Customize products or services to the tastes of

the target audiences

Customizing- changing a product to fit the needs or wants of a particular market.

CUSTOMIZING EXAMPLES

Customizing examples: McDonalds has a regular happy meal and has a

more healthy one with fruit for health conscious parents

Pampers diapers - not only are they sized to fit babies they have adults sizes too!

“Yah! I’ll be home in a bit, oh my way home from doin’ laundry!”

PARTNER ACTIVITY

QUICK! Get with a partner 1 piece of paper Come up with three products or services that

are customized to fit the customer’s wants/needs

Describe how/why it is customized You have 7 minutes

CUSTOMIZING PRODUCTS

Impromptu – spontaneous and changing entertainment based on audience reaction.

Who thinks they can give an impromptu speech right now??????? For a Hakim buck?????

LOCAL TV AMERICAN STYLE

National network TV shows are mainly filmed and produced in Los Angeles. Alot of $$$$ to make and require a large viewing

audience to pay the costs Local programming – fraction of the cost to

make but does not attract viewers nationally. Ex – Wayne’s WorldWhat are our local programming channels?

SPORTS PROGRAMMING. PG 232

Sports programs used to be broadcasted on a regional level

Now, as you know, sports can be viewed via cable, satellite or pay-per-view

Rising costs of cable have attracted the attention of the Federal Communication Commission which has proposed “tiering” prices for sports programming.

Tiering- certain sports programs outside the basic cable package would incur extra costs for the viewers who choose them.

MARKETING TO BABY BOOMERS – PG 233

Baby Boomers – the generation born between 1946 – 1964.

76 million “baby boomers” reached their peak spending level at age 46.

Surge in Boomer spending began in 1993 and ended in 2008

Great market to target for entertainment

SEGMENTING THE GROUP

The Baby Boomers have a large range in ages – some can be 18 years apart in age and still be considered a Baby Boomer!

Difficult to market to such a varied audience According to the US Census Bureau, the

average age of the US population: In 1994 – 34 In 2000 – 35.5 In 2035 – 39.1

ENTERTAINING THE BOOMERS

The Boomers are seeing more and more films Large increases in movie theater audiences

are attributed to growing attendance by Baby Boomers.

Movies like Seabiscuit are made with Boomers in mind movie about over coming odds Middle aged man

CHAPTER 9.2 – ENTERTAINMENT TECHNOLOGY AND MARKETING

Objectives: Explain the economic utility of entertainment

Discuss the impact of technology on entertainment

Describe the need for balance between privacy and marketing information

Essential Question – What is economic utility?

ENTERTAINMENT ECONOMICS

People have limited time and money to spend on entertainment (along with everything else)

We must make decisions on how we will spend our limited resources

Often, we base our decisions on the amount of satisfaction we will receive from purchasing the product or service…

Economic utility- the amount of satisfaction a person receives from the consumption of a particular product or service.

Ex -

ENTERTAINMENT ECONOMICS (CONT’D)

Sports and entertainment businesses are constantly seeking ways to increase economic utility of their products.

The utility improvements can take place in four categories: Form Time Place Possession

TYPES OF UTILITY

Form Utility- when the physical characteristics of a product or service are improved Ex – offering a movie in BlueRay over DVD

format Time Utility- the result of making the movie

available when the viewer wants it Ex – Offering the movie pay-per-view from your

cable provider Place Utility – ensures that the movie is

available where the viewer wants it. Ex – more RedBox locations or more video rental

store locations

TYPES OF UTILITY (CONT’D)

Possession Utility – making the movie available at an affordable price To take possession of the movie, the customer

must be able to finance it through convenient methods of payment. Ex – Renting a movie or being able to buy a movie

using your credit card

PARTNER ACTIVITY

QUICK! One partner, not the one you were with last time! 1. Pick any one product or service 2. Give specific examples of how using the four

types of utility (form, time, place and possession) can make it better to suit the customer

Ex- Product = Movie Form – BlueRay instead of DVD Time – Pay-per-view Place – More RedBox locations Possession – pricing the movie at $12.99 so people

can afford it

UTILITIES ON BROADWAY

Broadway shows are expensive and many people can’t afford to go to the shows

Fortunately, Broadway show producers know this so they take their show on the road

By taking the productions to the audiences in major cities, which of the four utilities are improved for the people outside of NYC???? Time Place Possession

SPEED IS THE KEY. PAGE 238

The speed at which entertainment can be delivered to homes will determine much of it’s evolution

Bandwidth- the capacity of communication channels. Often referred to as using hoses…

VS

Fire hose stunt

ONLINE GAMING?

Never even considered ‘til highspeed came around

HOW DO WE GET TO THE NET?

What are the most common ways we can connect to the internet?Dial-up (most common 15 years ago)

Uses land-line phone service to connect; can’t make phone calls when connected

DSL (digital subscriber line) – replaced dial-upWorks with a land-line phone service but you can still make phone calls

Broadband (most common now)Uses existing cable service coming into your house

MORE ABOUT THE INTERNET

The internet is an international network of computers.

ISP- (Internet Service Provider) Fee-based companies make it possible for us to access the internet.

At home, who is our ISP to hook-up to the net?

TECHNOLOGY

The Internet is a key component in changes to the entertainment marketplace

As the number of online consumers continues

So does

electronic commerce

promotion of entertainment-related businesses

COOKIES, ANYONE?

Web site owners gather information about visitors Track where you went on the website Which pages you clicked on Which ads you viewed

Clickstream data- collected at each mouse-click within a web site.

Cookie- small data file placed on the hard drive of the web site visitor, collects the data

= shady

Did you know?

Every time you “like” a business on FB, they have to pay $1 to FB