Types of Entertainment Products Media Product Marketing 2

Types of Entertainment Products Media Product Marketing 2

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

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

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

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 Evergreens are important Evergreens to the film industry. 6

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

Music CDs and Distribution In addition to in-store sales, the marketing of online music and rack jobbers music jobbers contribute to the sales of music Online music- I heart radio, pandora, I Tunes, etc. rack jobbers independent vendors who distribute, price, and control their own inventory within a store 8

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

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. 10

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

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 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? 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. 15

Marketing Film and Distribution The film market is divided into the primary market and the secondary market primary market in film distribution, the target audience which is theaters that show films in first release After a studio or independent production company creates the products, it is shopped to exhibitors 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 16

Marketing Film and Distribution The exhibitor breaks down gross revenue sources in revenue 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 trailers previews of upcoming movies shown before the main feature The film studio and the exhibitor use trailers to trailers create interest in new releases. 17

Marketing Television Syndication is a great Syndication source of revenue for studios and networks. syndication selling television programs to individual stations, not networks Television target audiences are specialized by programming the schedule, or times, for broadcasting shows on television; or on radio, also the music style and playlist 18

Marketing 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. 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 20

Marketing the Music In prior years, payola was payola 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 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. 22

Media and Marketing The media are not only sources of pure entertainment products, they are also effective entertainment marketing tools. 23

A Piece of the Action Entertainment memorabilia is often sold Operating an e-tail business on an electronic channel—the at large auction houses. Internet Web—can be costly, due to design, delivery, returns, and auction sites such as e. Bay now make it operating expenses. possible for anyone to obtain a tiny piece of entertainment history. Though Many larger dot-com companies crashed in the It’s not just collectors who are doing the selling—television 1990’s, small stores like Harris Cyclery of West Newton, and movie studios have latched onto this idea, offering for Massachusetts, actually increase sales using a basic Web sale autographs, costumes, scripts, small props, and crew site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. uniforms. These pop-culture artifacts generate money for the studios, publicity for the shows or movies, and satisfaction for Describe an e-business’s home page to your class after the fans. viewing one through marketingseries. glencoe. com. For more information on sports and entertainment marketing, go to marketingseries. glencoe. com. 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. 25

Checking Concepts 1. Name three entertainment products. 2. Explain primary and secondary markets. 3. Define evergreen products. 4. Describe impulse spending. continued The primary market in 1. Evergreen products 2. 3. DVDs, CDs, video 4. Impulse spending is film distribution is the games, and many buying without prior are films or target audience or the others. planning. products that are 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. 26

Checking Concepts 5. Programming, which 6. 7. Theme parks utilize The game target is the style of music market is young: themes, characters, and play lists of 40% are under 18, stories, and other radio stations or the and 40% are intellectual property schedule of shows 18 - 35. of the owners; 6. Describe the customers broadcast on water parks are low of electronic and video television, is -cost fun centers for games. important because it the whole family. is through knowing 7. Explain the importance of the target market programming. that advertisers purchase air time. continued 27 5. Differentiate between theme parks and water parks.

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. 28

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