Types of Entertainment ProductsTypes of Entertainment Products

Media Product MarketingMedia Product Marketing

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Chapter Objectives

Identify types of entertainment products.Define evergreen products.Describe location-based entertainment (LBE).Explain the significance of impulse spending.Explain why marketing is involved in entertainment product development.Discuss the difference between primary and secondary markets.Explain the importance of programming.

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Entertaining Products

The entertainment industry produces a wide variety of goods and services including:

Media-basedEntertainmentGoods

• Films on DVD and video• Music on DVD and CDs• Video and electronic games

• Books and magazines• Toys• T-shirts• Concessions

Media-basedEntertainmentServices

• Television shows• Movies in theaters• Concert performances• Theater performances

Recreation-basedEntertainmentServices

• Amusement parks• Zoos• Museums• Snack-bars

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Film and Music Merchandising

Theatres provide media-based services.

concessions snack-bars that sell popcorn, soda, and candy

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Theatres also provide concessionsconcessions.

The home entertainment industry sells media-based goods.

Film and Music Merchandising

Film producers have two choices for DVD and video distribution—to rent or to sell through the customer.

evergreens films or products that are popular year after year

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Evergreens are important to the film industry.

Marketing Film and Distribution

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Movie

Product

Theaters

Primary Market

Secondary Market

Foreign marketTelevision

Home rentalsHome sales

Cable TVAirlines

ToysClothingBooks

Posters

Tie-Ins

Film soundtrack

Cross-Marketing

Music CDs and Distribution

In addition to in-store sales, the marketing of online musiconline music and rack rack jobbersjobbers contribute to the sales of music

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Online music- I heart radio, pandora, I Tunes, etc.

rack jobbers independent vendors who distribute, price, and control their own inventory within a store

Electronic and Video Games

Cross-marketing in video game distribution is common.

Common tie-ins include:– Films– Music– Sports– Merchandise

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Print Books and Magazines

Trade books (fiction, humor, poetry, self-help, etc.) are published for general bookstores.

Romance novels- sold in drug stores, supermarkets: Who is the target market?

Magazines offer marketers ready-made target markets.

Major media corporations that own film and television studios also own print media.

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Theme Parks and Water Parks

Location-based Location-based entertainment (LBE)entertainment (LBE) has evolved into major entertainment forms.

location-based entertainment (LBE) entertainment that includes amusement, theme, animal, and water parks

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The park environment is set up for impulse impulse spendingspending.

impulse spending buying without prior planning

Tie-ins play an important role in LBE venues.

Edutainment

Museums– Make money to acquire collections, maintain physical

buildings, hire staff

Zoos– 134 million people visit zoos and aquariums= more

than the NFL, NBA, and MLB combined

Theaters

Special Entertainment Events

Special entertainment events provide entertainment services.– Circuses, state fairs, pageants, ice shows– Can be a blend of sports and entertainment

Each event supplies a venue for selling related entertainment products.– Concessions and souvenirs

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Why are evergreens important to the film industry?

What are three forms of location-based entertainment? (LBE)

What is a rack jobber?

1.

2.

3.

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Media Marketing Channels

The major media marketing channels are:

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Film

TV

Radio

Print publishing

Internet

Marketers are involved in the development of most entertainment products, or goods and services.

Marketing Film and Distribution

The film market is divided into the primary marketprimary market and the secondary secondary marketmarket.

primary market in film distribution, the target audience which is the theaters that show films in first release

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After a studio or independent production company creates the products, it is shopped to exhibitorsexhibitors.

secondary market in film distribution, target audience after a film has been in first run at theatersexhibitors theaters that sell tickets and show films to an audience

Marketing Film and Distribution

The exhibitor breaks down gross revenuegross revenue sources in two areas:

– 70 percent from ticket sales– 30 percent from concession

sales

gross revenue total income from sales before costs, expenses, and taxes are deducted

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trailers previews of upcoming movies shown before the main feature

The film studio and the exhibitor use trailerstrailers to create interest in new releases.

Marketing Television

SyndicationSyndication is a great source of revenue for studios and networks.

syndication selling television programs to individual stations, not networks

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programming the schedule, or times, for broadcasting shows on television; or on radio, also the music style and playlist

Television target audiences are specialized by programmingprogramming.

Marketing Radio

Radio was one of the best ways to target your advertising message to an audience.

There are over 11,000 commercial radio stations in the United States with over 2 million listeners.

Country music being the most popular with 2088 stations.

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Marketing the Music

Promotion strategies include: jingle a catchy tune or song that promotes a product and accompanies television, radio, or Internet advertisements

Targeting specific markets

Focusing on specific stations with specific markets

Artists performing jinglesjingles

Artist Web sites

Talk show interviews

Chat room discussions

Charitable activities

ad campaign a promotional plan that combines selling, advertising, public relations, and the use of different media to reach the target market

Ad campaignsAd campaigns

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Marketing the Music

In prior years, payola was the key to having DJs play a record.

payola an illegal payment by record labels to radio stations to persuade them to play the label’s records

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Today record labels might hire independent agents to promote records to stations and provide gifts to station personnel to encourage them to play the music on the radio.

Marketing Print Media

Global trade shows and book fairs have been successful venues for showcasing new books.Book-signing events and book tours by authors generate publicity and interest.TV talk shows and interviews are an effective marketing strategy.Magazines use direct marketing.E-publishing is starting to gain popularity.Most newspapers have corresponding Web sites.

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Media and Marketing

The media are not only sources of pure entertainment products, they are also effective entertainment marketing tools.

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Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

A Piece of the Action

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It’s not just collectors who are doing the selling—television and movie studios have latched onto this idea, offering for sale autographs, costumes, scripts, small props, and crew uniforms. These pop-culture artifacts generate money for the studios, publicity for the shows or movies, and satisfaction for the fans.For more information on sports and entertainment marketing, go to marketingseries.glencoe.com.

Entertainment memorabilia is often sold at large auction houses. Internet auction sites such as eBay now make it possible for anyone to obtain a tiny piece of entertainment history.

What is the difference between the primary market and the secondary market in film distribution?

What is gross revenue?

Define programming.

1.

2.

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3.

Name three entertainment products.

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Explain primary and secondary markets.

DVDs, CDs, video games, and many others.

1. The primary market in film distribution is the target audience or the theatres that run films in first release; the secondary market is the target audience after a film has been first run at theatres: foreign theatres, home rentals and sales, cable TV, airlines.

2.

Define evergreen products.

Evergreen products are films or products that are popular year after year.

3.

Checking Concepts

Describe impulse spending.

1.

2.

3.

4.

continued

Impulse spending is buying without prior planning.

4.

Differentiate between theme parks and water parks.

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Describe the customers of electronic and video games.

Theme parks utilize themes, characters, stories, and other intellectual property of the owners; water parks are low-cost fun centers for the whole family.

5.

Explain the importance of programming.

The game target market is young: 40% are under 18, and 40% are 18 - 35.

6.

Checking Concepts

5.

6.

7.

Programming, which is the style of music and play lists of radio stations or the schedule of shows broadcast on television, is important because it is through knowing the target market that advertisers purchase air time.

7.

continued

A handful of major companies produce the bulk of the movies that are released; additionally, major theater chains control about 65 percent of the movie screens in the United States. Other business giants control other parts of the industry; Time Warner is one example. These companies can absorb losses more easily than small companies because they always have some unit that is earning very well.

8.

Explain why you think large media companies have so much control over entertainment.

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Critical Thinking

Checking Concepts

8.

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