Transcript File - Kecoughtan Marketing

Customized Entertainment
Chapter 7 Lesson 3
Sports and Entertainment Marketing
Journal Entry
Date: 3/10/11
Objective: The student will define
customizing and describe the financial
impact of Baby Boomers on the
entertainment industry.
Question: What age group are Baby
Boomers? Why would they have an
impact on the entertainment industry?
Opening Act
For more than a decade, regional
corporations have been building cineplexes
containing as many as 30 screens in suburban
areas. Magic Johnson, a retired basketball
legend, created Magic Johnson Theaters as a
way of counteracting this trend. Johnson
chooses the locations of his theaters based on
the economic needs of minority
neighborhoods. In February 2004, 5 theaters
were opened - one each in the inner cities of
Cleveland, Atlanta, Los Angeles, Houston and
New York City.
Johnson wants his theaters to be
community centers focused on
distribution of a personalized service
to a market segment. Concession areas
are stocked with food and beverages
that appeal to minorities. Customizing
allows marketers to promote to a
specific segments of the population.
Think Critically
What information would Magic Johnson
need in order to determine locations
for more movie theaters?
Customizing Products
One of the first steps in developing the
marketing mix is to collect marketing
information about the consumers of
the product
Customizing is changing a product to
fit the needs or wants of a particular
market
Customization Example
In Southern California, Killer
Entertainment provides live impromptu, or
spontaneous and changing, entertainment
based on audience reactions
A production can include audience
participation in a comedy, drama, or
murder mystery
By understanding the audience,
entertainment can be customized for its
tastes
Local TV
Planning and production of shows are
expensive and require a large viewing
audience to attract advertisers to
cover the production costs
Local television programming has been
consolidated and barely exists anymore
but requires knowledge of the market
segment’s interests
Children’s Programming
Children’s programming began with locally
produced programs
Local news anchors or weathermen often
dressed up as clowns to host the shows
The hosts often had such a strong
influence on children that parents
pressured broadcasters to prohibit the
hosts from personally endorsing children’s
products
Sports Programming
Sports programs used to be broadcast
only on a regional level until cable
television
Now viewers can watch their teams
through either regional sports networks
or national sports networks via cable or
satellite, sometimes on a pay-per-view
basis
Rising Costs of Sports
Programming
Excessive salaries of sports figures
have been pushed onto cable networks
which have been pushed onto
subscribers
Tiering was suggested to help with
rising costs and involves specific sports
programming being offered outside the
basic cable or satellite package
Public TV and Radio
Viewer- and listener-supported TV and radio
stations generally have as their mission to
entertain and educate their audiences
Usually non-profit organizations financed
through grants, corporate donations, and
listener contributions
Stations know their audiences and and work
to please them
Intermission
Why is different TV programming
shown in different cities or regions of
the United States?
Baby Boomers
Born between 1946 and 1964
Over 76 million baby boomers who are
said to reach their peak spending level
at age 46
Their spending on leisure time and
entertainment activities will continue
the major economic impact started in
1946
Boomers Won’t Retire
Expected to soften the line between
career and retirement
Enjoy recreational activities, personal
fitness, and all types of entertainment,
from concerts to fine arts
These consumers have discretionary
income to pay for the products and
services they desire
Segmenting the Group
Knowledge of the customer’s spending
habits, incomes, preferences, occupations
and areas of residence can provide the
marketing information needed to focus
the marketing message
Baby Boomers vary greatly so marketers
must be careful when targeting them
Aging Population
Average age of the population is
increasing
1994 it was 34
2000 it was 35.5
2035 it will be 39.1
Marketers have to keep this in mind
Marketing Myths
The United States has a long history as a
“melting pot” that welcomes all
immigrants. However, for marketing
purposes it was primarily viewed as a
white, Anglo-Saxon nation. This will change
if the latest studies by the census bureau
prove to be accurate. The bureau
estimates the fastest growing segment of
society to be Hispanic.
This group contributed 32 percent of
the nation’s population growth from
1990 to 2000. It is expected to
contribute 39 percent of the nation’s
growth from 2000 to 2010, 45 percent
from 2010 to 2030, and 60 percent
from 2030 to 2050. By 2010, the Census
Bureau estimates that Hispanic
spending in the United States will be
nearly $200 billion.
Think Critically
What does this information tell
entertainment marketers and
marketers in general?
Entertaining the Boomers
Boomers are finding more time for
entertainment
Large increase in movie theater
audiences
Boomers account for 1/3 of all attendance
Boomers like to see stars of their own
age
Understanding All Parts
of the Group
Marketers must be careful not to
exclude part of the group
To assume that all people in a large
group have the same interests is a
costly mistake
Boomers will continue through 2020 to
be a major target of entertainment
marketing
Intermission
Why are Baby Boomers important to
entertainment marketers?
Encore
1. An advantage of customized entertainment over
entertainment for the masses is
a.
b.
c.
d.
More people will buy it
It can be impromptu, based on the audience
No information is needed about the customers
None of the these
2. Baby Boomers are important to entertainment
marketers because
a.
b.
c.
d.
They have discretionary income
They are interested in leisure-time activities
They are expected to be active throughout retirement
Of all of these
3. If Baby Boomers are the largest age
group in the nation, why is so much
sports and entertainment advertising
aimed at 12- to 24-year olds?
4. Break down the Baby Boomers into
four different niche markets based on
age and gender. Name two sports or
entertainment products or services to
market to each niche.
Class Work
Make a list of people you know that are
Baby Boomers
What niche market do these people fall
into?
What types of sports and entertainment
products/events do they enjoy?
What products/events would you try to
market to them?