Product and Price Decisions: Entertainment

1. Product and Price Decisions: Entertainment Branding and Entertainment Price Decisions

2. Branding and Entertainment • To explain entertainment ______ _______, brand _______, and _____________ • To identify brand ____________ used by entertainment companies • To explain how ___________ are brands

3. The Role of Branding • ___________ and ____________-among most important elements in marketing mix today • Labeling cars, an airline, soup or movies • For ex: Campbell’s means soup • Popular brand _______are vital to the success of companies and products

4. Origins of Branding • Earliest known brands were seen on ___________ of cattle in cave murals in Southern France • Stone Age • 5000 year old _________ has it’s maker’s __________________ • In _______, England passed a _____ that required bakers to mark their breads for identification • 1700s-1800s-growth of __________ ___________ led to increased need for manufacturer’s to distinguish theirs from their competition

5. Brand Identity Today • Choosing a ________ __________ is an important product decision • Brand may include all the _______ and ___________ you have regarding a particular ___________, _________, or ________ • Brand __________-consistent feeling or image that consumers recognize when encountering the brand • Could purchase an unrecognized item based on brand recognition Ex: Samsung products, Trilogy movies • Brand ________ -brand name and symbol • Sometimes a slogan (catchy phrase) is developed too

6. Different Identities • Difficult to be ____________ • Ex: Universal Studios: products are varied and widespread (various types of genres, ages, etc.) • Walt Disney-family style, G-rated • If compromised or lost-cost Disney millions of $

7. Fixed Brand identity • Consistency leads to more focused ____________ • But does limit the market (Ex: Disney only family) • Don’t branch out b/c you risk what you have created • (Ex: Disney-controversial actors or films) • What to do? Create other ___________ owned by your corporation but _____ identified with the company ______ • Hollywood Pictures, Touchstone Pictures • Splash with Tom Hanks, Dick Tracy with Warren Beatty, Al Pacino, Madonna, Open Range with Kevin Costner

8. The value of trademarks • __________ you see everyday that help you identify with goods/services you buy • Ex: Golden arches (McDonald’s), peacock logo (NBC), mountain in movie (Paramount Studios) • __________ ownership • Provide ______ protection for the brand and products • ____________-(tie products with a movie)-very profitable for product maker and movie maker Other Types: • _______mark-a trademark identified by a sound • Roaring lion (MGM) • _______mark-a trademark identified by a specific movement • Winged horse that leaps off the movie screen (Tri-Star Films)

9. Entertainment brands on the internet • Just as ___________ as conventional marketing • _______ channel for marketing entertainment b/c of ____________ capabilities • Need domain name

10. Music and the internet • In 2003, ___________ against those who engaged in illegal ___________ of music (__________) • Industry believed it __________ the ____________ of artists and record companies • Some artists agreed with the ____________ but others felt people would always find a way to get free music • Apple ipod legal distribution of music and maintained control of music distribution

11. Celebrities as brands • Not just performers • Brands-monetary value, just like Nike, Pepsi • Brand ____________-development and introduction of ____ products that _______the brand and take advantage of the recognition and image of an ____________ brand name • Madonna-Gap hired her for commercials • Gap believed she appealed to many ages and would project the idea that Gap sells products for all generations • J Lo-clothing line • P Ddiddy-clothes

12. Franchises • Entertainment franchise-series of films, programs, character portrayals planned to expand the character’s activities in a series • Films • TV Franchises

13. Crossover artists • Related to a performer’s image or brand is crossover • ___________-an expansion of the popular appeal of an artist or work by achieving success in another market or style • For ex: Shania Twain-Country to pop • Shaquille O’Neal-bball to rap music to films • Purpose: Increase mainstream ___________ and stay in the public eye

14. Archived Brands • A brand strategy • To become a classic strategy, legendary status • Elvis Presley

15. Questions • Why can a performer be considered a brand? • What is brand extension? • What is meant by a crossover artist?

16. Price Decisions • To define gross profit and net profit • To identify different pricing goals • To identify factors that determine CD and concert ticket prices

17. Revenue, profit, loss • Revenue-total ________ brought in through the _______ of goods and services • Can include ticket sales, merchandise sales, or concession sales, advertising income from selling spots on TV or radio • Product placement-___________ of a product as a _____ in a _____ or TV _____, in exchange for a ___paid by the product’s advertiser. • For ex: German automaker BMW paid $15 mill to MGM to have its cars in James Bond movies • MGM includes this revenue as part of rev for film

18. Profit • Gross profit-________ minus the _____ of the goods sold • ________-_______=_______ • Examples of costs for film: film negatives, theater, actors’ salaries, stage production, etc. • Net profit-gross profit _______ __________ (or those costs out of production) • These costs are most commonly-taxes • Could also be advertising, PR, selling costs

19. PRICING STRATEGIES AND GOALS • In the entertainment field, it is similar to _______pricing for goods. • Marketers must determine ______ for pricing • Could be based on: • recovering costs • getting a specific return on investment • hitting profit goals • meeting or beating the competition

20. Recovering Costs • Difficult to make a _________ in the entertainment industry • CDs released by record companies do not recover the cost of production and distribution • Prices of CDs must be set high enough to recover the costs • Profits from successful CDs help to offset those of no success

21. Return on investment • ______-for every ______ the company puts into a project, the goal is to get the maximum ______ • For ex: an entertainment company could look at these options: • 1 dollar put in a bank might bring a return of two to four cents on the dollar, before taxes, with very little risk • 1 dollar could be invested in producing a CD by a new band and earn 5-10 cents per dollar, with a very high risk of total loss of investment-or the slim chance it oucld earn millions of dollars • _________ production pricing • The ________ rate is very high • Marketers must look at a variety of pricing goals