Transcript SEM-Chp13-EntMarketResearchandOutlets

Targeting Entertainment
Research Methods
Entertainment Outlets and Venues
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Section 13.1 – Targeting
Entertainment Markets – Objectives
Explain how market
research is used to
identify target markets
Discuss how
demographics are used
in entertainment
marketing
Explain the use of
primary and secondary
data
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Section 13.1 – Targeting Entertainment
Markets – Importance of Market Research
Marketing efforts will fail if the
consumer does not like the
product
Marketers want to know what
kind of consumers is likely to
buy their product before they
invest their money into
developing and marketing a
product
Market research can help
determine how to best approach
the consumer
Marketers want to know:
 Who is in the market to buy their
product
 What these consumers want
 How to best give it to them
The goal of the entertainment
marketer:
 Understand the target market’s
needs and tailor the product
and the message to that market
The goal of the entertainment
product:
 To entertain
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Section 13.1 – Targeting Entertainment
Markets – Importance of Market Research
Entertainment Products and Market Research
Entertainment products are
based on creative ideas
 A Melody
 An Image
 A Story
 A Character
More difficult to target to a
single group of customers
 Each product will appeal to a
unique group of consumers
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Section 13.1 – Targeting Entertainment
Markets – The Market Research Process
Market research helps business leaders understand their
markets
The five steps of conducting market research are:
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Identify information needs:
Decide what you want to know.
Create research objectives:
Create questions you want answered.
Create a plan to meet your objectives:
Outline research methods.
Design a method for collecting and interpreting data:
Compile results.
Summarize and apply findings:
Adjust marketing strategy based on data.
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Section 13.1 – Targeting Entertainment
Markets – Consumer Demographics
Consumer groups can be
divided into market segments
that are categorized by
demographic characteristics
 Age, Income, Occupation,
Gender, Ethnicity, Education,
Marital status, Geographic
location, Lifestyle choices
Consumers thoughts involve
psychographics
 Studies of consumers based on
their attitudes, interests, and
opinions
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Section 13.1 – Targeting Entertainment
Markets – Consumer Demographics
Demographics in the Entertainment Market
Researching demographic
information is important
when marketers want to
know who is:
 Watching
 Attending
 Listening to
 Reading
 Buying their merchandise
Benefits of studying
demographics:
 Marketing professionals can
effectively develop, package,
and promote their products
to their target market
 The can sell advertising to
clients who market to the
same demographic group
 Alert marketers to new or
expanding markets to include
in their marketing strategies 8
Section 13.1 – Targeting Entertainment
Markets – Consumer Demographics
Selling to Target Demographic
Television networks rely on Nielsen
ratings to determine which
demographic groups are watching
particular shows
Nielsen ratings:
 Monitors the viewing habits of
segments of U.S. population
 Households randomly selected to
participate
 Data classified by the demographic
characteristics of households surveyed
 Survey notes what, where, and when
shows are playing
Marketers get complete picture
of what shows viewers choose to
watch
Nielsen survey information can
help business direct their
advertising to specific target
demographic groups
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Section 13.1 – Targeting Entertainment
Markets – Consumer Demographics
Creating Product for Target Markets Special-Interest Cable Channels
Teens and young adults with
Prime-time show with high
part-time jobs make up a
Nielsen ratings = More viewers
powerful demographic and
Companies with products that
psychographic group
interests that target market will
 Discretionary income
buy advertising space during that
 Large spending potential
time
 After-school leisure time
Marketers create products
 Social life
specifically to attract the dollars
 Value a variety of entertainment
of the “Prime Time” demographic
and leisure products
Programs and special-interest
cable channels are designed for
this specific group
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Section 13.1 – Targeting Entertainment
Markets – Primary Research
Primary research can allow marketers to solve problems or answer
questions about a product before it is released to consumers
Product testing is an example of primary research used by marketers
 Assessment of a product to see if it works, meets industry standards for
safety, and is user-friendly
When conducting market research, researchers are more interested in
finding out how customers will react to product – will it sell
Testing is done to check if customers will buy a product instead of
checking to see if it works
Primary research information is called primary data
 Information collected from primary research used specifically for an issue
under study
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Section 13.1 – Targeting Entertainment
Markets – Primary Research
Secondary Research
Research that already exists on a product or a market
Used to understand trends in a market
 A pattern, habit, or tendency following a general course
Secondary date can provide information on a number of trends in a market
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Consumer buying trends
Seasonal or economic buying trends
Sales and products of other businesses in an industry
General demographic information about consumers
Sources of secondary data:
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Nielsen Group
U.S. Census Bureau
Trade magazines
Consumer reports
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Section 13.2 – Research
Methods – Objectives
Explain the difference
between qualitative and
quantitative research
Identify methods of
conducting
entertainment market
research
Explain the difference
between contrived
settings and natural
settings
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Section 13.2 – Research Methods –
Information Advantage
Finding out how an entertainment
consumer will react to a product before it is
released into the market is vital to
entertainment companies and marketing
professionals
Market Testing
Marketers can find out if their product will
get a favorable response through market
testing
Market testing will provide the answer to
the question on every marketer’s mind: Will
this product sell?
Testing consumer reaction to a product
gives marketers a chance to make
adjustments to their marketing plan
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Section 13.2 – Research Methods –
Qualitative and Quantitative Research
Finding out Qualitative and Quantitative information both before and
after a product has been released will provide marketers a complete
picture of how consumers respond to the product
Qualitative research is data that measures qualities such as people’s
reactions and perceptions
 Not based on numerical information, but can expressed using
numbers
 Example: “Three out of four people on a ride thought it was
exciting”
 Does not give information about specific numbers
 Example: Telling how many specific people enjoyed a ride
 Answers the question of Why a demographic consumes a product
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Methods of Qualitative Research
Qualitative research provides information about consumer perceptions,
opinions, or feelings about a product or service in entertainment marketing
Asking people about what they think or how they feel about a product is the
best method of Qualitative Research
 Examples: Interviews and Surveys
Personal and Interactive Interviews
Done in a number of ways with different levels of consumer participation
Personal or online interview methods can be used to obtain information from
consumers about products and services
 Examples: Personal and online focus groups or mall intercepts
Respondents are consumers who participates in personal interactive
interviews or other research methods
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Personal and Interactive Interviews – cont.
At the beginning of the interview process, questions are:
 General
 An attempt to find out more about the respondent
 Helping determine which demographic and psychographic groups the respondents
belong
Examples:
 How old are you?, What do you do for a living?
As the interview process progresses, questions are:
 More specific, depending on what the marketers want to find out
 Designed to collect research information
Examples:
 Do you go to theaters to see movies, or do you rent or buy films?
 Do you prefer comedies, action films, or dramas?
Researchers develop a profile of preferences and buying habits of different
demographic groups by analyzing the results of these questions
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Focus Groups
Most in-depth of interviews
Made up of consumers brought together in a controlled environment to
discuss or try products or services
A Moderator will ask:
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Group member’s opinion about the product or service tested
If each consumer likes the product
In what way the product needs to be improved
If participants would buy the product after trying it
Online Focus Group
Used to measure consumer opinions
Participants exchange their views and opinions in online chat rooms
Respondents send back their reactions to content streamed to chat room
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Mall Intercepts
A market research interview conducted in a public
place
Researchers stop people and ask shoppers questions
about the product they are researching
 Give researchers a chance to interact with consumer
and gather information
 Can ask standard questions followed up by in-depth
questions based on consumer’s responses
Respondents are not screened beforehand and are
chosen at random
Without pre-screening, researchers find it difficult to
identify respondent’s psychographic information
 Can skew the results of the survey, especially is very
specific information is desired
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Surveys
A questionnaire or series of questions designed to collect specific information
Are completed by the respondent or researcher asking the respondent
questions and filling in his/her responses
Only as good as the questions asked
Questions are designed to collect specific information set within specific
guidelines:
 How many people will be surveyed
 Type of questions to be asked
 Demographic to be included or excluded
Advantage of surveys are that they are less expensive that in-person
interviews
Disadvantage of surveys are that only a small percentage of mail and Internet
surveys are completed and returned by respondents
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Quantitative research is data expressed as amount in
numbers
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Based on numerical information
Example: “250 people rode the new roller coaster”
Gives information about specific numbers
Example: Tells how many people rode the ride
Answers the question of How Many of a demographic
consumes a product
Methods of Quantitative Research
Two effective methods used in quantitative research to find
numbers marketers need:
 Surveys and Observational research
 Provide marketers with information that can be tallied
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Surveys
Effective at collecting
quantitative data that relates to
consumer behavior
Survey results are converted to
Statistical information when
they are added up
 Statistics are a collection of
numerical data that can be
compared, analyzed, and
interpreted
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Observational Research
A method of collecting data by
observing respondents in
contrived or natural settings
Process:
 Cameras or spotters are placed
in the research environment to
gather information
 Observe consumer behavior in
different situations, or in relation
to product
 Data collected is used to
evaluate the effectiveness of
promotions, design, or products
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Contrived Settings
Contrived settings are set up and prearranged
Process:
 Created in a research facility where client products are
tested along with a sample of other products chosen by
the researchers
 Observe the respondents through a one-way mirror or
camera
 Choices and reactions to products are noted
 Five or Six competing products are provided to
respondents to try and they choose the product they
prefer
Artificial setting because the choices of products and
locations do not reflect the choices and factors involved
in a real shopping situation
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Section 13.2 – Research Methods –
Research Methods in Entertainment Marketing
Natural Settings
Researchers can watch how consumers behave and shop without
affecting their choices
Researchers immerse themselves in shopping situation to observe
how customers react to certain products
Methods:
 Mystery Shopper – a market researcher who poses as a shopper to
observe how consumers and retailers behave in shopping situation
 Ethnography – study of social and cultural behavior and habits
 Researchers place themselves in the culture or society of a
particular group to better understand their habits and
behaviors
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Section 13.2 – Research Methods –
Media Entertainment Research
Media entertainment products include:
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Movies
Music Videos
DVDs
Commercials
Electronic games
Media entertainment marketing firms test their
products using quantitative and qualitative
methods and observe reactions
Marketing research firms:
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RIVA: Research in Values and Attitudes
Hugh Bowen and Associates Interactive Research
SIS International Research
Audience Research and Analysis
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Section 13.2 – Research Methods –
Media Entertainment Research
Screening Rooms
Used by marketers to show consumers previews, TV shows, movies,
commercials, and movie trailers
Designed to simulate the experience of seeing a film on a big screen with
theater-quality sound
Provide respondents with small remote controls which allow for real-time
behavior-response
 Remotes have buttons that can indicate whether the respondent likes or dislikes
the product allowing for instant analysis by marketing team
Data collected in screening room is combined with larger audience
responses and analyzed using graphed data
Live-Action and Recreational Entertainment Research
Allows marketers to learn about tourists behavior while visiting tourist
destinations
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Section 13.3 – Entertainment
Outlets and Venues – Objectives
Identify criteria for
selecting outlets and
venues
Determine factors that
must be in place prior to
new venue construction
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Section 13.3 – Entertainment Outlets and
Venues – Other Entertainment Marketing
Businesses / Outlets and Venues
Market research affects both entertainment products and decisions
regarding entertainment outlets and venues
Outlets and Venues
Outlet is a place where a marketed product is released and made available
Venue (also an Outlet) is a place where live events are presented
Outlet and Venue managers are in charge of marketing their locations to the
entertainment companies that produce concerts, movies, live events, and
shows
Functions of Outlet managers:
 Win a contract to host event
 Ticket sales
 Promotion
 Event management
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Section 13.3 – Entertainment Outlets
and Venues – Outlets and Venues
Size, Location, and Population
Outlet and venue marketers try to match the entertainment event with the
appropriate venue
Factors playing a role in event marketing:
 Venue size, location, and Area population
Venue Marketers consider the limitations and advantages of their venue
when booking an act
Event type and target demographic group will dictate where an event can
take place
Factors to consider:
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Seating capacity
Ticketing and merchandising outlet capacity
Parking capacity
Restroom and food facilities
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Section 13.3 – Entertainment Outlets
and Venues – Outlets and Venues
Income from Venues
Venues can create hundreds of jobs through their construction and
operation
Venue risks and consideration:
 Local population must be willing and able to support a venue
 Venue must be safe and functional
 Venue promoters must be able to book shows and fill seats
Stadiums can be funded by combination of private investments and
taxpayer money
Benefits of an income-generating venue make projects worthwhile to
taxpayers
Most difficult part of making a venue profitable is keeping events
booked and selling the venue to capacity for all events
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