Transcript Retailing Chapter 2

Entertainment Marketing
Types of Entertainment Businesses
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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.
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That’s Entertainment
Throughout history and around the world, people
have enjoyed _______, ______, ________, _____,
and other forms of diversion.
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That’s Entertainment
Television is one means
used for entertainment
marketing.
entertainment
marketing
Other forms of
entertainment include:
Radio
Recorded music
Newspapers and magazines
Video games (home or arcade)
Films (theatrical or home)
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That’s Entertainment
The companies that control
the media influence how
the public is entertained.
media
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The Influence of
Entertainment
The clothing we wear,
hairstyles, and style in
general are influenced by
entertainment marketing.
fad
Many products or services
influenced by
entertainment are fads.
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Entertainment and the
Marketing Concept
Movie and TV studios are constantly striving to
anticipate customer wants and needs and provide
what the public wants.
Entertainment usually has a short “_____ ____.”
The marketer must cover costs and make a profit
_____________.
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The Economics of
Entertainment
Entertainment marketing relies on meeting
consumer demand for _________ and _________
at a price the customer is willing to pay.
Shoppers can afford to buy only a limited amount of
product before __________ their budgets.
The ___________ and sports businesses thrive on
getting people to spend their discretionary ______.
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The Economics of
Entertainment
Merchandising is a big part
of the entertainment
industry.
cross-selling
Businesses use
cross-selling to increase
profits
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International
Entertainment
Around the world, people
spend money as
Americans do when it
comes to leisure time.
leisure time
Entertainment products are
one of America’s strongest
exports.
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Business Structures
Most businesses that produce ___________ for
consumers are large corporations with many
_____________ and employees.
Most of these businesses started out as single
____________ or ______________.
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Business Structures
The major entertainment companies are:
The Walt Disney Company
Sony Entertainment
Viacom (Paramount)
Time Warner
Vivendi Universal
The News Corporation (20th Century Fox)
These companies are structured using vertical
distribution.
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Movies
Films are released by
distributors—usually the
studio or a related
company—and shown by
theaters, or exhibitors, to
the public.
break even
Four out of ten films
produced may not break
even.
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Movies
A few large studios make
up the core of the film
business, which is
considered an oligopoly.
oligopoly
Independent movie
companies called indies
operate on their own to
make films.
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Movies
In 2000, the breakdown of revenues for film was:
___Percent
Theatrical Receipts
___ Percent
Video/DVD
Sales and
Rentals
___ Percent
Television Sales
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Theme Parks
The first theme parks were called “______
______” and appeared in Europe around 1550.
Walt Disney planned Disneyland to have
exhibits and _________ for all ages.
Disney signed sponsors to help pay for
___________.
The idea for water parks developed in the
late ______.
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Television
Television is the number
one entertainment medium
for many Americans.
affiliate
The producers of shows are
not necessarily distributors.
An independent TV station
may decide to become an
affiliate.
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Television
Ratings are a type of
market research that
determines if a program
stays on the television
schedule or is dropped.
ratings
The most famous ratings
company is Nielsen Media
Research.
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Television
Advertising time can be
split between national ads
and local ads.
niche marketing
Prime time is the most
expensive advertising time.
Niche marketing has
expanded in television
marketing with the number
of cable stations.
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Radio
_________ stations function as television
stations do—as either ___________ stations or
part of national networks.
_________ stations rely on market research to
determine the popularity of _________.
Each category of programming has a specific
_________ _________.
For radio, prime time is the morning-drive-towork period of time.
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Music Industry
The _______ __________is dependent on record
companies to sign artists and produce and release
CDs.
Record companies make large profits from
successful artists who rely on up-front _________
and royalties.
The music industry has lost money as a result of
illegal file sharing and __________ _______for free
on the Internet.
Live __________ generate income for the music
industry.
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Performing Arts
___________ art is a very _________
business today.
Many productions are financed and produced
by the same large __________ companies
that produce film and television.
Many popular __________ shows tour
around the country.
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The Internet and
Computers
Shopping on the Internet
has not replaced the brickand-mortar store.
brick-and-mortar store
The growth of the video
and computer game
industry has been steady
and expansive.
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Other Entertainment
Businesses
Other entertainment
businesses include:
nonprofit organization
The circus
Themed restaurants
Opera and ballet
– nonprofit organizations
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Types of Entertainment Businesses
______
Theme Television _____ Music
Performing The Internet ____
Parks
Industry Arts
Seek Out Target Markets
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Checking Concepts
1. Define entertainment
marketing.
2. Identify types of media.
3. Name two consumer
products that are
influenced by
entertainment.
continued
It
is the of
process
of
1. Types
2.
3.
Answers
media
may vary:
developing,
include
film,
promoting, and
television,
radio,
distributing products,
recorded
music,
or goods and
print
media
such as
services,
to satisfy
newspapers
andand
customers’ needs
books,
the Internet,
wants through
entertainment,
and
more. or any
diversion,
amusement, or
methods occupying
time.
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Checking Concepts
4. Describe an oligopoly.
5. Identify types of
entertainment industry
businesses.
6. Explain why many
films produced do not
break even.
7. Define ratings.
continued
4. The
5.
6.
7.
Ratings
It
Types
is acost
business
ofare:
of
situation infilms
entertainment
producing
which
is a
fewhigh
industry
so
firmsthat
affect but
do not control
businesses
sometimes
include
an
industry.
film,
expenses
TV, radio,
are
music, theme
greater
than park,
Internet, computerincome.
game, and
performing arts
businesses. Other
answers are
possible.
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Checking Concepts
Critical Thinking
8.
8. Describe how cable TV
uses niche marketing.
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