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

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Other forms of entertainment include:

RadioRecorded musicNewspapers and magazinesVideo games (home or arcade)Films (theatrical or home)

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

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Many products or services influenced by entertainment are fads.

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

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Businesses use cross-selling to increase profits

International Entertainment

Around the world, people spend money as Americans do when it comes to leisure time.

leisure time

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Entertainment products are one of America’s strongest exports.

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:

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The Walt Disney CompanySony EntertainmentViacom (Paramount)Time WarnerVivendi UniversalThe News Corporation (20th Century Fox)

These companies are structured using vertical distribution.

Movies

Films are released by distributors—usually the studio or a related company—and shown by theaters, or exhibitors, to the public.

break even

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Four out of ten films produced may not break even.

Movies

A few large studios make up the core of the film business, which is considered an oligopoly.

oligopoly

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Independent movie companies called indies operate on their own to make films.

Movies

In 2000, the breakdown of revenues for film was:

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___PercentTheatrical Receipts

___ PercentTelevision Sales

___ PercentVideo/DVDSales andRentals

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

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The producers of shows are not necessarily distributors.

An independent TV station may decide to become an affiliate.

Television

Ratings are a type of market research that determines if a program stays on the television schedule or is dropped.

ratings

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The most famous ratings company is Nielsen Media Research.

Television

Advertising time can be split between national ads and local ads.

niche marketing

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Prime time is the most expensive advertising time.

Niche marketing has expanded in television marketing with the number of cable stations.

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-to-work 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 brick-and-mortar store.

brick-and-mortar store

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The growth of the video and computer game industry has been steady and expansive.

Other Entertainment Businesses

Other entertainment businesses include:

nonprofit organization

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The circusThemed restaurantsOpera and ballet– nonprofit organizations

Types of Entertainment Businesses

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______

ThemeParks

Television

_____

MusicIndustry

PerformingArts

The Internet

Seek Out Target Markets

____

Define entertainment marketing.

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Identify types of media.

It is the process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants through entertainment, or any diversion, amusement, or methods occupying time.

1. Types of media include film, television, radio, recorded music, print media such as newspapers and books, the Internet, and more.

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Name two consumer products that are influenced by entertainment.

Answers may vary:3.

Checking Concepts

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continued

It is a business situation in which a few firms affect but do not control an industry.

4.

Identify types of entertainment industry businesses.

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Types of entertainment industry businesses include film, TV, radio, music, theme park, Internet, computer-game, and performing arts businesses. Other answers are possible.

5.

Define ratings.

The cost of producing films is so high that sometimes expenses are greater than income.

6.

Checking Concepts

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7.continued

Describe an oligopoly.4.

Explain why many films produced do not break even.

Ratings are:7.

8.

Describe how cable TV uses niche marketing.

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Critical Thinking

Checking Concepts

8.