Chapter Objectives. That s Entertainment. Entertainment Marketing. Types of Entertainment Businesses

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1 Entertainment Marketing Types of Entertainment Businesses 2 Chapter Objectives Define entertainment marketing. Identify different types of entertainment media. Explain the economics of entertainment marketing. Discuss the global impact of entertainment marketing. Explain types of businesses in the entertainment industry. Identify forms of entertainment marketed to consumers. That s Entertainment Throughout history and around the world, people have enjoyed music, sport, spectacle, art, and other forms of diversion

2 That s Entertainment That s Entertainment Television is one means used for entertainment marketing. entertainment marketing The companies that control the media influence how the public is entertained. media Other forms of entertainment include: 5 6 The clothing we wear, hairstyles, and style in general are influenced by entertainment marketing. Many products or services influenced by entertainment are fads. The Influence of Entertainment fad Entertainment and the Marketing Concept Movie and TV studios are constantly striving to anticipate customer Entertainment usually has a short. The marketer must cover costs and 7 8 2

3 The Economics of Entertainment Entertainment marketing relies on meeting consumer demand for... Shoppers can afford to buy Merchandising is a big part of the entertainment industry. Businesses use cross-selling to increase profits The Economics of Entertainment cross-selling The entertainment and sports businesses thrive on Around the world, people spend money as Americans do when it comes to leisure time. International Entertainment Entertainment products are one of America s strongest exports. leisure time What does the term media mean? What are fads? What product is one of America s strongest exports?

4 Business Structures Most businesses that produce entertainment for consumers are... Business Structures The major entertainment companies are: Most of these businesses started out as... These companies are structured using vertical distribution Movies Movies Films are released by distributors usually the studio or a related company and shown by theaters, or exhibitors, to the public. Four out of ten films produced may not break even. break even A few large studios make up the core of the film business, which is considered an oligopoly. Independent movie companies called indies operate on their own to make films. oligopoly

5 28 Percent Television Sales Movies In 2000, the breakdown of revenues for film was: Theme Parks The first theme parks were called and appeared in Europe around Walt Disney planned Disneyland to... Disney signed to help pay for Disneyland. The idea for developed in the late 1980s Television Television Television is the number one entertainment medium for many Americans. The producers of shows are not necessarily distributors. affiliate Ratings are a type of market research that determines if a program stays on the television schedule or is dropped. ratings An independent TV station may decide to become an affiliate. The most famous ratings company is Nielsen Media Research

6 Television Advertising time can be split between national ads and local ads. Prime time is the most expensive advertising time. Niche marketing has expanded in television marketing with the number of cable stations. niche marketing 21 Radio Radio stations function as television stations do as Radio stations rely on market research to... Each category of programming For radio, prime time is the 22 Music Industry The music industry is dependent on record companies to Record companies make large profits from successful artists who The music industry has lost money as a result of Performance art is a Performing Arts Many productions are financed and produced by the Many popular Broadway shows Live performances generate income

7 The Internet and Computers Shopping on the Internet has not replaced the brickand-mortar store. The growth of the video and computer game industry has been steady and expansive. brick-and-mortar store Other entertainment businesses include: Other Entertainment Businesses nonprofit organization Variety of Markets Types of Entertainment Businesses With so many forms of entertainment, marketing professionals have unlimited products to offer to almost any target market. Seek Out Target Markets

8 Checking Concepts What is an indie movie company? What is prime time for television? What are royalties? Define entertainment marketing. Identify types of media. Name two consumer products that are influenced by entertainment. 29 continued Describe an oligopoly. Identify types of entertainment industry businesses. Checking Concepts Critical Thinking 8. Describe how cable TV uses niche marketing. Checking Concepts 6. Explain why many films produced do not break even. 7. Define ratings. continued

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