Chapter 9

1. Chapter 9 Marketing Entertainment

2. SWBAT: • Explain customizing entertainment products for a market segment • Describe customized entertainment marketing for Baby Boomers • Essential question: Why would companies want to customize entertainment for customers?

3. 9.1 - Customized Entertainment Market Segment- a group of people who have the ability and the desire to purchase a specific product Develop the marketing mix Step 1: • Collect marketing information about the largest market segment for that product Step 2: • Customize products or services to the tastes of the target audiences Customizing- changing a product to fit the needs or wants of a particular market.

4. Customizing Examples “Yah! I’ll be home in a bit, oh my way home from doin’ laundry!” • Customizing examples: • McDonalds has a regular happy meal and has a more healthy one with fruit for health conscious parents • Pampers diapers - not only are they sized to fit babies they have adults sizes too!

5. Partner Activity • QUICK! • Get with a partner • 1 piece of paper • Come up with three products or services that are customized to fit the customer’s wants/needs • Describe how/why it is customized • You have 7 minutes

6. Customizing Products • Impromptu – spontaneous and changing entertainment based on audience reaction. • Who thinks they can give an impromptu speech right now??????? • For a Hakim buck?????

7. Local TV American Style • National network TV shows are mainly filmed and produced in Los Angeles. • Alot of $$$$ to make and require a large viewing audience to pay the costs • Local programming – fraction of the cost to make but does not attract viewers nationally. Ex – Wayne’s World What are our local programming channels?

8. Sports Programming. pg 232 • Sports programs used to be broadcasted on a regional level • Now, as you know, sports can be viewed via cable, satellite or pay-per-view • Rising costs of cable have attracted the attention of the Federal Communication Commission which has proposed “tiering” prices for sports programming. • Tiering- certain sports programs outside the basic cable package would incur extra costs for the viewers who choose them.

9. Marketing to Baby Boomers – pg 233 • Baby Boomers – the generation born between 1946 – 1964. • 76 million “baby boomers” reached their peak spending level at age 46. • Surge in Boomer spending began in 1993 and ended in 2008 • Great market to target for entertainment

10. Segmenting the group • The Baby Boomers have a large range in ages – some can be 18 years apart in age and still be considered a Baby Boomer! • Difficult to market to such a varied audience • According to the US Census Bureau, the average age of the US population: • In 1994 – 34 • In 2000 – 35.5 • In 2035 – 39.1

11. Entertaining the Boomers • The Boomers are seeing more and more films • Large increases in movie theater audiences are attributed to growing attendance by Baby Boomers. • Movies like Seabiscuit are made with Boomers in mind • movie about over coming odds • Middle aged man

12. Chapter 9.2 – Entertainment Technology and Marketing • Objectives: • Explain the economic utility of entertainment • Discuss the impact of technology on entertainment • Describe the need for balance between privacy and marketing information • EssentialQuestion – What is economic utility?

13. Entertainment Economics • People have limited time and money to spend on entertainment (along with everything else) • We must make decisions on how we will spend our limited resources • Often, we base our decisions on the amount of satisfaction we will receive from purchasing the product or service… • Economic utility- the amount of satisfaction a person receives from the consumption of a particular product or service. • Ex -

14. Entertainment Economics (cont’d) • Sports and entertainment businesses are constantly seeking ways to increase economic utility of their products. • The utility improvements can take place in four categories: • Form • Time • Place • Possession

15. Types of Utility • Form Utility- when the physical characteristics of a product or service are improved • Ex – offering a movie in BlueRay over DVD format • Time Utility- the result of making the movie available when the viewer wants it • Ex – Offering the movie pay-per-view from your cable provider • Place Utility – ensures that the movie is available where the viewer wants it. • Ex – more RedBox locations or more video rental store locations

16. Types of Utility (cont’d) • Possession Utility– making the movie available at an affordable price • To take possession of the movie, the customer must be able to finance it through convenient methods of payment. • Ex – Renting a movie or being able to buy a movie using your credit card

17. Partner Activity • QUICK! • One partner, not the one you were with last time! • 1. Pick any one product or service • 2. Give specific examples of how using the four types of utility (form, time, place and possession) can make it better to suit the customer • Ex- Product = Movie • Form – BlueRay instead of DVD • Time – Pay-per-view • Place – More RedBox locations • Possession – pricing the movie at $12.99 so people can afford it

18. Utilities on Broadway • Broadway shows are expensive and many people can’t afford to go to the shows • Fortunately, Broadway show producers know this so they take their show on the road • By taking the productions to the audiences in major cities, which of the four utilities are improved for the people outside of NYC???? • Time • Place • Possession

19. Speed is the key. Page 238 • The speed at which entertainment can be delivered to homes will determine much of it’s evolution • Bandwidth- the capacity of communication channels. • Often referred to as using hoses… VS Fire hose stunt

20. Online gaming? Never even considered ‘til highspeed came around

21. How do we get to the net? • What are the most common ways we can connect to the internet? • Dial-up (most common 15 years ago) • Uses land-line phone service to connect; can’t make phone calls when connected • DSL (digital subscriber line) – replaced dial-up • Works with a land-line phone service but you can still make phone calls • Broadband (most common now) • Uses existing cable service coming into your house

22. More about the internet • The internet is an international network of computers. • ISP- (Internet Service Provider) Fee-based companies make it possible for us to access the internet. • At home, who is our ISP to hook-up to the net?

23. Technology • The Internet is a key component in changes to the entertainment marketplace • As the number of online consumers continues So does electronic commerce promotion of entertainment-related businesses

24. Cookies, anyone? • Web site owners gather information about visitors • Track where you went on the website • Which pages you clicked on • Which ads you viewed • Clickstream data- collected at each mouse-click within a web site. • Cookie- small data file placed on the hard drive of the web site visitor, collects the data Did you know? Every time you “like” a business on FB, they have to pay $1 to FB = shady