Entertainment Marketing

Professor Phillip Cartwright

Paris School of Business
EMBA
Principles
 The Marketing of Entertainment
 Magazine market

 Music

 TV
 Black and white to color,
Betamax to VHS
 DVD and satellite
 Music videos
 Movie on demand and pay
per view
 And More Changes…
 Competition for consumers interest reached
Olympian levels
 Messages need to draw attention so the messages
became entertainment
 As a marketing professional you have: print,
network TV, cable, radio,
 Rough gross revenues world-wide (movies $18B,
home video $34B, music $40B, cable $73B, TV
$110B, publishing $93B, sports $140B)
 Entertainment is only US based industry that has a
trade surplus, not deficit
 More youth and more disposable income
 How Does Entertainment
Marketing Differ From Other
Promotions?
 It’s consumed with speed so little test marketing
 Every film, CD , etc… is a new product with different content and
audiences
 Misfire films or hint of bad box office must be counteracted
immediately
 Huge budgets
 Production is based all on creativity
 Selling an experience
 Is subject to same whims as fashion trends
 Award shows can make or break a product
 Changing channels of distribution
 Initial product and spin offs
 Competition from all forms of entertainment
 The Four C’s of Entertainment
 Content
 Conduit
 Consumption
 Convergence
 Content

 Covers everything to produce the actual

entertainment product

 Creative, Copyright, Production

 The Creative Idea
1. Technology
2. Talent
3. Perishability
Conduit, Consumption, Convergence
Conduit
 Process of delivery
 The where…
 … and how

Consumption
Point finished product is offered and
consumed

Convergence
 Ability to create, transmit, and capture all
info digitally
Why a copyright is so important

 Licensing
 Allowing someone else to
use your copyrighted
material
 Merchandising
 Selling products/services based on
your own copyrighted material
 Sponsorship
The People, Power, and Players
 What Does it Take?
 Where to market the product?
 To whom?
 The price
 The package
 The position
 When Product Life Cycle
–
 The 3 P’s
 People
– Everyone involved in marketing - from the idea
generation to the final finished product to the
merchandising and spin-offs
 Power
– Financial
 Funds needed to run the business, produce
the product, etc…
– Social
 Players
– The People with the Power
 Decisions
 Large
– Decisions made by CEO (or similar figure) with advice
from advisors
 Small
– Recurring and consistent decisions, normally made by
marketing team with approval of executive
 No
– Costs skyrocketing, finished product has a serious delay,
etc… and no one wants to make a decision
– Not a good sign if decisions aren’t able to be made
 Relying on Research
 Limited time to gather and analyze
information

 Technology has allowed for more

continuous collection and easier “on the
spot” collection
– Ability to pursue more niche marketing
 Tailoring The Team and the
Outside Agency
 President of Licensing
 Merchandising
 Entertainment Attorney
 Talent Agent
 Financial Officer
 Outside Agency
– McCann
– DDB Worldwide
– Grey Advertising
– Young & Rubicam
 Making the Deal and Getting it done
 Requires social capital
– Within and outside the organization
 With such a limited time frame, knowing who
and how is vital to the “right” type of
promotion
 Concerns for consistency and reaching the
intended target market
Movies
 Big Box Office
 Domestic Box Office
– Why do we go to the theaters when
we can stay at home?

– Inelastic pricing

– Who is the most sought after?

 High Concept
“The Ultimate Hollywood Expression”

 Known stars or director

 Simple storyline
 Single image marketing motif
 Connection to prequels, established
music, existing theatre
 Merchandising
 Who?
 Who is the producer?
– Independent:
 Marketing!!!!
– Studio:
 Restricted responsibilities: controlling budget,
scheduling and coordinating on-location staff
 Most promotion done by President of Marketing and
staff
– Executive Producer
 President, CEO and even chairman of
studio can get involved with large budget
films
 WANNASEE
 Consumer research
– Focus groups, surveys, interviews
– Test screenings
 Sneak Previews – always?
 TV Commercials – what and when?
 WANNASEE
 Newspaper
– “A” movies full-page on Sundays, and teaser campaigns in all
local papers
 Trailers – types?
– Teaser
– Story
– Plusses and Minuses
 Tie-Ins
– Benefit for film?
– Benefit for company?
 More Marketing…
 The Oscars – benefit?
 Internet
– Devoted website
– Ratings websites

 In flight movies
 Independent Films

 How are they different?

– 40% of releases but only 20% revenue, WHY?

– Marketing and research are afterthoughts

 Wild postings
– The audience?
Syndication, and Radio
 Network TV
 What is the main difference with respect to
marketing?

 What drives network TV?

 What is the key to entering this market?

 Local TV
 The 3 relationships
– Owned and operated

– Affiliates

– Independents
 What’s On?
 News
 Local cut-ins
 Documentaries
 Sports
 College football
 Amateur
 The Basics of TV Ratings
 www.nielsenmedia.com

 Nielsen families

 How does it work?

 Key Terms

– Sweeps
– DMA
– Metro Area
– HUT
– Household Rating
 Key Demographics
 Advertisers wants bang for buck
 Network TV focus:
– Adults, both genders, 18-24
– Adults, both genders, 25-49
– Cable is different

– Time slots principal day parts

 Early morning, daytime, early fringe, early news, access,

prime, late news, late fringe, prime time Sundays

 Promotion and Marketing
 The need to build the
brand-”Must- See
TV”, “Come Home
to CBS”

 Self Marketing

 Vertical, horizontal,
and standard cross
plugs
 Promotions and Marketing
 Intra-Industry Marketing

 Relationship Marketing and Halo Effect

 The clones

 The Fall launch

 Just like the movies

 Syndication
 Where produced?
 Off net, first run,
syndicated product in
action
 Stripping
 Selling and licensing
 Cash deals
 No Commercials
 PBS
– State, university,
school, community
-Marketing strategies
Value, Branding, pop-
ups, expand viewer ship

TV Technology
HDTV
MSN TV
 Radio-The Very Basics
 Marketing Manager (to increase TSL to
promote advertising time)
– Establish a position
– Event driven opportunities
– Community events, call in contests, publicity,
WOM, on site broadcasts at events, cross
promotion, recycling strategy
– CUME, AQH
 Audio Diversity
 Challenge is niche
 Identifying Target Niches
 Know the audience
 Listen and analyze
 Great Data
 Partner up

Changing Technology
 Internet Radio, Airwaves
to IWaves
 TV radio
 Satellite Radio
 Radio Wars or Sunbeam TV

Radio Wars
 What is the situation?
 What are the key elements in driving a radio
stations profitability?
 What should WFNX do and why?
Sunbeam TV
 What is the situation?
 What should Ansin do? Align with Fox or NBC?
Why?
 List the pros and cons of each option
 Radio Wars
 Situation?
– WFNX is small player rapidly evolving with mergers and
acquisitions, competition intensifies music format (alternative aka
modern rock), hard to differentiate play list because everyone has
same access to music
– Ratings (declining share of market which drives revenues) is
effected
– WBCN negotiating power with suppliers (record companies),
marketing clout, and power technology

 Key elements in driving profitability?

– Total number of listeners (population, commuters or drive time
– Station share , day part share or program appeal, market, costs,
promotions and price per listener
 Sunbeam TV
 Situation?
– WSVN-TV (7-Miami) was FOX affiliate
owned by Sunbeam. In 1993 acquired WHDH
(7-Boston), CBS Affiliate. CBS chose
affiliation from 7 to 4 in Boston. WHDH had
option of aligning with NBC or FOX
 NBC Pros
– Mainstream programming
– Covers broad demographics
– Primetime ratings
– Brand programs
 Seinfeld, Today show, Tonight Show
 NBC Cons
 May lack demographics
 May lack fit (WHDH only a small fish)
 Cut into News product and revenue
 FOX Pro
 Young demographics
 Up and coming programming
 Melrose place
 Simpsons
 WSVN Miami already their top rated affiliate
 Real partner like relationship (Ansin and Murdoch
have done business
 Channel 7 can continue morning news
 FOX Con
 Ratings are weak
 May94 6.7 vs 11.3 for NBC

 Also
– Demographics differences between Boston and
Miami
Musical Ride
Musical Roots
To What?

From What?
 Quick Snapshot of Music
Development
 Aspiring singer/songwriter writes few hot songs for a hot genre
 They form a band or work solo and build a loyal fan base at music clubs and festivals
 They hire a manager/producer
 An A&R professional hears the demo, likes it, makes a recommendation to produce a
CD, and puts the act in front of music label executive with decision making authority
 Senior exec agrees to move forward and commits to a budget to move the act forward
 Label hires or uses staff engineers, back ups, studios, artists, songwriters, and in
house producer to polish the work
 A CD is mastered and a major marketing push developed
 A music video is made, a publicist arranges talk shows, a tour manager books
concerts, magazine covers are planned, national radio air play is organized, and the
video is aired on MTV or VH1
 Shipments go to wholesaler, major music retailers are sent details on marketing push,
signage is put in stores, and media and publicity campaign in implemented
 Money Changes Everything

Retail sales of CD’s etc.

Ticket sales
Royalties and fees from performance of recordings on
radio, TV, movies, and commercial venues such as
restaurants and nightclubs
Fees of re-recorded music and play by Muzak and other
background companies, reproduction in music boxes and
toys
Retail sales income and royalties for sheet music
Sales of t-shirts, jackets, tour books, and other promotional
merchandise
 How do I tap that income?
Traditional Approach
Sign a contact with a major record company who takes care
of marketing and promotions
Align the act with an established music publisher who takes
acre of administrative and promotional matters of
songwriting
With music publisher, affiliate with performing rights
organization (ASAP and BMI) who track radio and TV
airplay and handle your royalties
Hook up with a large talent and booking agency who
handles business of touring and live performance
Hire independent publicity firm (some already done by
record label but the “indie” adds fuel with more magazine
and newspaper coverage)
 People Involved
MARKETING

SALES PROMOTION

PUBLICITY ADVERTISING

CREATIVE SERVICES
 ARTIST

FINISHED
A&R RECORDING MASTER RECORDING

MKTG/SALES PRODUCT PRESSING/

PACKAGING DUPLICATION

PRESS KITS/ PROMO ITEMS/ PACKAGED

PROMO MATERIAL STORE DISPLAYS CDs/MP3

CDs/MP3
MASS MEDIA PROMO MATERIAL DISTRIBUTOR

PRESS COVERAGE RETAIL STORES CDs/MP3

CONSUMER
The Alternative Route-Do it Yourself or
Guerilla Marketing

Record the CD in small studio

Order mass duplication and storage of CD’s
Form small publishing company and deal directly with
performing rights agencies
Use Internet to promote CD and act
Sell CD via Internet, direct mail, and toll free numbers
Convince smaller record stores to stock CD
Personally book live club dates
Make personal contact with area media to publicize act
Build the Product and They Will
Come?
Differentiating the product from
competitors
– Categorized for marketing purposes
– Target audience must be large enough to justify
cost
– Product must have selling points that can be
articulated
– Must be differentiated from competition
 The Rapper

 Packaging
– Physical requirements
– Information requirements
– Attractive, quality design
– Persuasive design
– Cost
 Pricing
Recording costs
Studio time
Musicians
Producer
Engineer
Tape
Mastering
Packaging
Promotional costs
 Promotions
 Print media
–Daily news
–Magazines
–general interest, lifestyle, entertainment, music and pop culture, genre based, promotional,
hobbyists and professionals, record collectors, trade pubs, fanzines
– Web based publications
 Radio
– Talk radio with music guests
– All news radio
– Commercial music radio
– Variety programming
– National public radio
– College radio
 TV
– Network late night, morning news with musical guests, prime time news with music
topics, showbiz news, cable music programming

Internet
 C for Content

Protection
ASCAP
BMI
IMJV
 The Gatekeepers
1. Radio
 I want airtime!

 The “indies”

 Payola

 Bogus request scams

 The Gatekeepers
2. Touring-
 How on earth do I afford it? The
MegaTour

3. Retail

4. TV
 VH1 and Viacom
 Back to that teen market
 C for Conduit
Majors

Independents

Private labels
 Music to the Masses

Movin’ merchandise
- What’s Walmart got to do with it?

Like a virgin

Music by mail
 Trends
New Niches
– Latin craze
– Black urban music
– Opera goes pop
– The church phenomenon
– Repackaging
 Trends

Soundtracks

Techno trends

Piracy
 Also….
Global Music Market

Billboard.com
Travel and Tourism
 Challenges

 Issues

 Match experience with

expectation
– Must entice and deliver

– Positioning/Image
 Desire to Travel
 Why do people travel?
– Wish to visit someplace exotic or
different
– Stimulation and gathering of
knowledge
– Pursuit of hobby

 The business of providing

Identify a Target Segment & Research,
Research, Research!!
 Travel Research
– Amer. Society of Travel
Agents (ASTA)
– Journal of Travel Research
– Fam. Trip
 Internal Research
– Exit surveys
 “Must haves”
 Focus, Identity,
Personality

 Attributes?
– Extensive and varied
lodging
– Variety of dining choices
 Advertising
 The travel agent
– Free service and WAS only
connection
 Relationship Marketing
– Reward programs
– Branding beds
 Agencies
 Alternative Destinations
 Cruises
 All Inclusive
 Time Shares
 Theme Parks
Location-Based Entertainment and Experiential
Branding
 Location Based Entertainment
 Out of home and message to medium
– Edu-tainment
– What went wrong?
 LBE
Retail mall model

– Casinos
– Entertainment retail
– Theaters
Characterizing Our
Experience Culture
 Experiential Branding
 What is branding?
 Give us something different!
 Bringing the brand to life
 Experiential Branding Offers

 Atmosphere to see, feel, touch,

 Experience that locks in memories with brand
 Image to investors demonstrating commitment
 Platform for introductions
 Employee pride
 For Success
 Must drive repeat visitors
 Must be refreshed
 Organized efficiently
 Staff must be part of brand
 Must offer value
 Experience Realms
Absorption
entertainment educational

Passive Active
Participation Participation

esthetics escapist
Immersion
 Products
Experiences
 Tangible
 Intangible
 Context-
 Standardized

 Production
dependent
 Simultaneous
separate from
consumption production and
 Not perishable
consumption
 Perishable
 Economic Distinctions
Offering Products Services Experiences
Economic make deliver stage
Nature tangible intangible memorable
Key attribute standardized customized personal
Supply inventoried delivered revealed
Seller manufacturer provider stager
Buyer user client guest
Factors of features benefits sensations
demand
Ticket-free Experience
 GAPS Model of
Service Quality
Audience expectations - standards of reference
points brought to a situation; sources are
from pricing, advertising, promotion, and
personal experience and word of mouth
Audience perceptions - subjective assessments
of the actual experience
 Four Provider Gaps
1. Not knowing what customers expect
2. Not selecting the right experience
designs and standards
3. Not delivering experience designs and
standards
4. Not matching performance to promise

 When have you experienced a service gap?

 SERVQUAL elements

 Access
 Communication
 Competence
 Courtesy
 Credibility
 Reliability
 Responsiveness
 Security
 Tangibles
 Understanding customers
Valuing Entertainment Assets
 Tangible assets: buildings, stock,
venture capital

 Intangible assets: franchises, licenses,

royalties, copyrights, trademarks, good
will, and brand or logo
Factors to Consider When
Marketing Experiences

 Immediacy - one chance and it’s gone

 Attention - awareness, evoked set

 Convergence - weaving products and

services together
 Media, entertainment, and
stars converge to promote in:
 Advergames
 Advertainment
 Product integration
 Product placement
 Product advertising
 Service advertising
 Blogs
 Music-tie-ins
What examples can you suggest of each?
Product Placement
Products are used to promote
media and entertainment
 Licensed merchandise
 Advertiser funded programs

 Bottle cap and can top premiums

 Supermarket discounts

 Consumer-produced ads
 Audience Types
 Predicted audiences - segments likely to
view or attend experience; changing
 Measured audiences - size and composition

of audience reached by media or attending

performance; central economic currency
 Actual audiences - globally fragmented;

difficult to determine accurately

 Cultural Dimensions
 Long-term orientation
 Power/distance

 Individualism/collectivism

 Masculinity/femininity

 Uncertainty avoidance