Types of Entertainment Products. Media Product Marketing

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2 Types of Entertainment Products Media Product Marketing 2

3 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. 3

4 Entertaining Products The entertainment industry produces a wide variety of goods and services including: Media-based Entertainment Goods Media-based Entertainment Services Recreation-based Entertainment Services Films on DVD and video Music on DVD and CDs Video and electronic games Books and magazines Toys T-shirts Concessions Television shows Movies in theaters Concert performances Theater performances Amusement parks Zoos Museums Snack-bars 4

5 Theatres provide mediabased services. Theatres also provide concessions. Film and Music Merchandising The home entertainment industry sells media-based goods. concessions snackbars that sell popcorn, soda, and candy 5

6 Film and Music Merchandising Film producers have two choices for DVD and video distribution to rent or to sell through the customer. Evergreens are important to the film industry. evergreens films or products that are popular year after year 6

7 Marketing Film and Distribution Primary Market Theaters Secondary Market Foreign market Television Home rentals Home sales Cable TV Airlines Product Movie Tie-Ins Toys Clothing Books Posters Cross-Marketing Film soundtrack 7

8 In addition to in-store sales, the marketing of record clubs and rack jobbers contribute to the sales of CDs Music CDs and Distribution record clubs organizations in which members receive free records if they agree to purchase additional records within a time period rack jobbers independent vendors who distribute, price, and control their own inventory within a store 8

9 Electronic and Video Games Cross-marketing in video game distribution is common. Common tie-ins include: Films Music Sports Merchandise 9

10 Print Books and Magazines Despite the computer age, customers are now buying more books and magazines than ever before. Trade books are published for general bookstores. Magazines offer marketers ready-made target markets. Major media corporations that own film and television studios also own print media. 10

11 Location-based entertainment (LBE) has evolved into major entertainment forms. The park environment is set up for impulse spending. Tie-ins play an important role in LBE venues. Theme Parks and Water Parks location-based entertainment (LBE) entertainment that includes amusement, theme, animal, and water parks impulse spending buying without prior planning 11

12 Special Entertainment Events Special entertainment events provide entertainment services. Circuses, state fairs, pageants, ice shows Each event supplies a venue for selling related entertainment products. Concessions and souvenirs 12

13 1. Why are evergreens important to the film industry? 2. What are three forms of location-based entertainment? (LBE) 3. What is a rack jobber? 13

14 Media Marketing Channels The major media marketing channels are: Film TV Radio Print publishing Internet Marketers are involved in the development of most entertainment products, or goods and services. 14

15 The film market is divided into the primary market and the secondary market. After a studio or independent production company creates the products, it is shopped to exhibitors. Marketing Film and Distribution primary market in film distribution, the target audience which is the theaters that show films in first release secondary market in film distribution, target audience after a film has been in first run at theaters exhibitors theaters that sell tickets and show films to an audience 15

16 Marketing Film and Distribution The exhibitor breaks down gross revenue sources in two areas: 70 percent from ticket sales 30 percent from concession sales The film studio and the exhibitor use trailers to create interest in new releases. gross revenue total income from sales before costs, expenses, and taxes are deducted trailers previews of upcoming movies shown before the main feature 16

17 Marketing Television Syndication is a great source of revenue for studios and networks. Television target audiences are specialized by programming. syndication selling television programs to individual stations, not networks programming the schedule, or times, for broadcasting shows on television; or on radio, also the music style and playlist 17

18 Marketing Radio Radio is 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. Programming radio is determined by the style of music and playlist or type of program. Competition in the radio industry is intense. 18

19 Marketing the Music Promotion strategies include: Targeting specific markets Focusing on specific stations with specific markets Artists performing jingles Ad campaigns Artist Web sites Talk show interviews Chat room discussions Charitable activities jingle a catchy tune or song that promotes a product and accompanies television, radio, or Internet advertisements ad campaign a promotional plan that combines selling, advertising, public relations, and the use of different media to reach the target market 19

20 Marketing the Music In prior years, payola was the key to having DJs play a record. 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. payola an illegal payment by record labels to radio stations to persuade them to play the label s records 20

21 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. 21

22 Media and Marketing The media are not only sources of pure entertainment products, they are also effective entertainment marketing tools. 22

23 A Piece of the Action Entertainment memorabilia is often sold Operating an e-tail business at large auction an electronic houses. Internet channel the Web can be costly, auction due to sites design, such delivery, as ebay returns, now make and it operating expenses. possible for anyone to obtain a tiny Though Many larger piece dot-com of entertainment companies crashed history. in the It s 1990 s, not just small collectors stores who like are Harris doing Cyclery the selling television of West Newton, and Massachusetts, movie studios actually have latched increase onto sales this idea, using offering a basic for Web sale site. autographs, Today, a third costumes, of Harris s scripts, bicycle small business props, and rides crew in on uniforms. the Web These to get pop-culture hard-to-find artifacts parts and generate personal money service. for the studios, publicity for the shows or movies, and satisfaction for the Describe fans. an e-business s home page to your class after viewing one through marketingseries.glencoe.com. For more information on sports and entertainment marketing, go to marketingseries.glencoe.com. 23

24 1. What is the difference between the primary market and the secondary market in film distribution? 2. What is gross revenue? 3. Define programming. 24

25 Checking Concepts Name three entertainment products. Explain primary and secondary markets. Define evergreen products. Describe impulse spending. continued The primary market in DVDs, Evergreen Impulse CDs, spending products video film is games, are buying distribution films and or without many is the target prior others. products planning. audience that are or the theatres that run films popular year after in first release; the year. secondary market is the target audience after a film has been first run at theatres: foreign theatres, home rentals and sales, cable TV, airlines. 25

26 Checking Concepts Differentiate between theme parks and water parks. Describe the customers of electronic and video games. Explain the importance of programming. continued Theme Programming, game parks target utilize which market is themes, style is young: of music 40% and characters, play are lists under stories, of 18, and radio 40% other stations are or the 18 schedule intellectual of property shows broadcast of the owners; on television, water parks is are important low-cost fun because it is centers through for knowing the the target market whole family. that advertisers purchase air time. 26

27 Checking Concepts Critical Thinking 8. Explain why you think large media companies have so much control over entertainment. 8. 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. 27

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