Targeting Entertainment

2. Targeting Entertainment Research Methods Entertainment Outlets and Venues 2

3. Section 13.1 – Targeting Entertainment Markets – Objectives • Explain how market research is used to identify target markets • Discuss how demographics are used in entertainment marketing • Explain the use of primary and secondary data 3

4. Section 13.1 – Targeting Entertainment Markets – Importance of Market Research • Marketing efforts will fail if the consumer does not like the product • Marketers want to know what kind of consumers is likely to buy their product before they invest their money into developing and marketing a product • Market research can help determine how to best approach the consumer • Marketers want to know: • Who is in the market to buy their product • What these consumers want • How to best give it to them • The goal of the entertainment marketer: • Understand the target market’s needs and tailor the product and the message to that market • The goal of the entertainment product: • To entertain 4

5. Section 13.1 – Targeting Entertainment Markets – Importance of Market Research Entertainment Products and Market Research • Entertainment products are based on creative ideas • A Melody • An Image • A Story • A Character • More difficult to target to a single group of customers • Each product will appeal to a unique group of consumers 5

6. Section 13.1 – Targeting Entertainment Markets – The Market Research Process • Market research helps business leaders understand their markets • The five steps of conducting market research are: • Identify information needs: • Decide what you want to know. • Create research objectives: • Create questions you want answered. • Create a plan to meet your objectives: • Outline research methods. • Design a method for collecting and interpreting data: • Compile results. • Summarize and apply findings: • Adjust marketing strategy based on data. 6

7. Section 13.1 – Targeting Entertainment Markets – Consumer Demographics • Consumer groups can be divided into market segments that are categorized by demographic characteristics • Age, Income, Occupation, Gender, Ethnicity, Education, Marital status, Geographic location, Lifestyle choices • Consumers thoughts involve psychographics • Studies of consumers based on their attitudes, interests, and opinions 7

8. Section 13.1 – Targeting Entertainment Markets – Consumer Demographics Demographics in the Entertainment Market • Researching demographic information is important when marketers want to know who is: • Watching • Attending • Listening to • Reading • Buying their merchandise • Benefits of studying demographics: • Marketing professionals can effectively develop, package, and promote their products to their target market • The can sell advertising to clients who market to the same demographic group • Alert marketers to new or expanding markets to include in their marketing strategies 8

9. Section 13.1 – Targeting Entertainment Markets – Consumer Demographics Selling to Target Demographic • Television networks rely on Nielsen ratings to determine which demographic groups are watching particular shows • Nielsen ratings: • Monitors the viewing habits of segments of U.S. population • Households randomly selected to participate • Data classified by the demographic characteristics of households surveyed • Survey notes what, where, and when shows are playing • Marketers get complete picture of what shows viewers choose to watch • Nielsen survey information can help business direct their advertising to specific target demographic groups 9

10. Section 13.1 – Targeting Entertainment Markets – Consumer Demographics Creating Product for Target Markets • Prime-time show with high Nielsen ratings = More viewers • Companies with products that interests that target market will buy advertising space during that time • Marketers create products specifically to attract the dollars of the “Prime Time” demographic Special-Interest Cable Channels • Teens and young adults with part-time jobs make up a powerful demographic and psychographic group • Discretionary income • Large spending potential • After-school leisure time • Social life • Value a variety of entertainment and leisure products • Programs and special-interest cable channels are designed for this specific group 10

11. Section 13.1 – Targeting Entertainment Markets – Primary Research • Primary research can allow marketers to solve problems or answer questions about a product before it is released to consumers • Product testing is an example of primary research used by marketers • Assessment of a product to see if it works, meets industry standards for safety, and is user-friendly • When conducting market research, researchers are more interested in finding out how customers will react to product – will it sell • Testing is done to check if customers will buy a product instead of checking to see if it works • Primary research information is called primary data • Information collected from primary research used specifically for an issue under study 11

12. Section 13.1 – Targeting Entertainment Markets – Primary Research Secondary Research • Research that already exists on a product or a market • Used to understand trends in a market • A pattern, habit, or tendency following a general course • Secondary date can provide information on a number of trends in a market • Consumer buying trends • Seasonal or economic buying trends • Sales and products of other businesses in an industry • General demographic information about consumers • Sources of secondary data: • Nielsen Group • U.S. Census Bureau • Trade magazines • Consumer reports 12

13. Section 13.2 – Research Methods – Objectives • Explain the difference between qualitative and quantitative research • Identify methods of conducting entertainment market research • Explain the difference between contrived settings and natural settings 13

14. Section 13.2 – Research Methods – Information Advantage • Finding out how an entertainment consumer will react to a product before it is released into the market is vital to entertainment companies and marketing professionals Market Testing • Marketers can find out if their product will get a favorable response through market testing • Market testing will provide the answer to the question on every marketer’s mind: Will this product sell? • Testing consumer reaction to a product gives marketers a chance to make adjustments to their marketing plan 14

15. Section 13.2 – Research Methods – Qualitative and Quantitative Research • Finding out Qualitative and Quantitative information both before and after a product has been released will provide marketers a complete picture of how consumers respond to the product • Qualitative research is data that measures qualities such as people’s reactions and perceptions • Not based on numerical information, but can expressed using numbers • Example: “Three out of four people on a ride thought it was exciting” • Does not give information about specific numbers • Example: Telling how many specific people enjoyed a ride • Answers the question of Whya demographic consumes a product 15

16. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing Methods of Qualitative Research • Qualitative research provides information about consumer perceptions, opinions, or feelings about a product or service in entertainment marketing • Asking people about what they think or how they feel about a product is the best method of Qualitative Research • Examples: Interviews and Surveys Personal and Interactive Interviews • Done in a number of ways with different levels of consumer participation • Personal or online interview methods can be used to obtain information from consumers about products and services • Examples: Personal and online focus groups or mall intercepts • Respondents are consumers who participates in personal interactive interviews or other research methods 16

17. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing Personal and Interactive Interviews – cont. • At the beginning of the interview process, questions are: • General • An attempt to find out more about the respondent • Helping determine which demographic and psychographic groups the respondents belong • Examples: • How old are you?, What do you do for a living? • As the interview process progresses, questions are: • More specific, depending on what the marketers want to find out • Designed to collect research information • Examples: • Do you go to theaters to see movies, or do you rent or buy films? • Do you prefer comedies, action films, or dramas? • Researchers develop a profile of preferences and buying habits of different demographic groups by analyzing the results of these questions 17

18. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing Focus Groups • Most in-depth of interviews • Made up of consumers brought together in a controlled environment to discuss or try products or services • A Moderator will ask: • Group member’s opinion about the product or service tested • If each consumer likes the product • In what way the product needs to be improved • If participants would buy the product after trying it Online Focus Group • Used to measure consumer opinions • Participants exchange their views and opinions in online chat rooms • Respondents send back their reactions to content streamed to chat room 18

19. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing Mall Intercepts • A market research interview conducted in a public place • Researchers stop people and ask shoppers questions about the product they are researching • Give researchers a chance to interact with consumer and gather information • Can ask standard questions followed up by in-depth questions based on consumer’s responses • Respondents are not screened beforehand and are chosen at random • Without pre-screening, researchers find it difficult to identify respondent’s psychographic information • Can skew the results of the survey, especially is very specific information is desired 19

20. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing Surveys • A questionnaire or series of questions designed to collect specific information • Are completed by the respondent or researcher asking the respondent questions and filling in his/her responses • Only as good as the questions asked • Questions are designed to collect specific information set within specific guidelines: • How many people will be surveyed • Type of questions to be asked • Demographic to be included or excluded • Advantage of surveys are that they are less expensive that in-person interviews • Disadvantage of surveys are that only a small percentage of mail and Internet surveys are completed and returned by respondents 20

21. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing • Quantitative research is data expressed as amount in numbers • Based on numerical information • Example: “250 people rode the new roller coaster” • Gives information about specific numbers • Example: Tells how many people rode the ride • Answers the question of How Manyof a demographic consumes a product Methods of Quantitative Research • Two effective methods used in quantitative research to find numbers marketers need: • Surveys and Observational research • Provide marketers with information that can be tallied 21

22. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing Surveys • Effective at collecting quantitative data that relates to consumer behavior • Survey results are converted to Statistical information when they are added up • Statistics are a collection of numerical data that can be compared, analyzed, and interpreted 22

23. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing Observational Research • A method of collecting data by observing respondents in contrived or natural settings • Process: • Cameras or spotters are placed in the research environment to gather information • Observe consumer behavior in different situations, or in relation to product • Data collected is used to evaluate the effectiveness of promotions, design, or products 23

24. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing Contrived Settings • Contrived settings are set up and prearranged • Process: • Created in a research facility where client products are tested along with a sample of other products chosen by the researchers • Observe the respondents through a one-way mirror or camera • Choices and reactions to products are noted • Five or Six competing products are provided to respondents to try and they choose the product they prefer • Artificial setting because the choices of products and locations do not reflect the choices and factors involved in a real shopping situation 24

25. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing Natural Settings • Researchers can watch how consumers behave and shop without affecting their choices • Researchers immerse themselves in shopping situation to observe how customers react to certain products • Methods: • Mystery Shopper – a market researcher who poses as a shopper to observe how consumers and retailers behave in shopping situation • Ethnography – study of social and cultural behavior and habits • Researchers place themselves in the culture or society of a particular group to better understand their habits and behaviors 25

26. Section 13.2 – Research Methods – Media Entertainment Research • Media entertainment products include: • Movies • Music Videos • DVDs • Commercials • Electronic games • Media entertainment marketing firms test their products using quantitative and qualitative methods and observe reactions • Marketing research firms: • RIVA: Research in Values and Attitudes • Hugh Bowen and Associates Interactive Research • SIS International Research • Audience Research and Analysis 26

27. Section 13.2 – Research Methods – Media Entertainment Research Screening Rooms • Used by marketers to show consumers previews, TV shows, movies, commercials, and movie trailers • Designed to simulate the experience of seeing a film on a big screen with theater-quality sound • Provide respondents with small remote controls which allow for real-time behavior-response • Remotes have buttons that can indicate whether the respondent likes or dislikes the product allowing for instant analysis by marketing team • Data collected in screening room is combined with larger audience responses and analyzed using graphed data Live-Action and Recreational Entertainment Research • Allows marketers to learn about tourists behavior while visiting tourist destinations 27

28. Section 13.3 – Entertainment Outlets and Venues – Objectives • Identify criteria for selecting outlets and venues • Determine factors that must be in place prior to new venue construction 28

29. Section 13.3 – Entertainment Outlets and Venues – Other Entertainment Marketing Businesses / Outlets and Venues • Market research affects both entertainment products and decisions regarding entertainment outlets and venues Outlets and Venues • Outlet is a place where a marketed product is released and made available • Venue (also an Outlet) is a place where live events are presented • Outlet and Venue managers are in charge of marketing their locations to the entertainment companies that produce concerts, movies, live events, and shows • Functions of Outlet managers: • Win a contract to host event • Ticket sales • Promotion • Event management 29

30. Section 13.3 – Entertainment Outlets and Venues – Outlets and Venues Size, Location, and Population • Outlet and venue marketers try to match the entertainment event with the appropriate venue • Factors playing a role in event marketing: • Venue size, location, and Area population • Venue Marketers consider the limitations and advantages of their venue when booking an act • Event type and target demographic group will dictate where an event can take place • Factors to consider: • Seating capacity • Ticketing and merchandising outlet capacity • Parking capacity • Restroom and food facilities 30

31. Section 13.3 – Entertainment Outlets and Venues – Outlets and Venues Income from Venues • Venues can create hundreds of jobs through their construction and operation • Venue risks and consideration: • Local population must be willing and able to support a venue • Venue must be safe and functional • Venue promoters must be able to book shows and fill seats • Stadiums can be funded by combination of private investments and taxpayer money • Benefits of an income-generating venue make projects worthwhile to taxpayers • Most difficult part of making a venue profitable is keeping events booked and selling the venue to capacity for all events 31