Customized EntertainmentChapter 7 Lesson 3Sports and Entertainment Marketing
Journal EntryDate: 3/10/11Objective: The student will define customizing and describe the financial impact of Baby Boomers on the entertainment industry.Question: What age group are Baby Boomers? Why would they have an impact on the entertainment industry?
Opening ActFor more than a decade, regional corporations have been building cineplexes containing as many as 30 screens in suburban areas. Magic Johnson, a retired basketball legend, created Magic Johnson Theaters as a way of counteracting this trend. Johnson chooses the locations of his theaters based on the economic needs of minority neighborhoods. In February 2004, 5 theaters were opened - one each in the inner cities of Cleveland, Atlanta, Los Angeles, Houston and New York City.
Johnson wants his theaters to be community centers focused on distribution of a personalized service to a market segment. Concession areas are stocked with food and beverages that appeal to minorities. Customizing allows marketers to promote to a specific segments of the population.
Think CriticallyWhat information would Magic Johnson need in order to determine locations for more movie theaters?
Customizing ProductsOne of the first steps in developing the marketing mix is to collect marketing information about the consumers of the productCustomizing is changing a product to fit the needs or wants of a particular market
Customization ExampleIn Southern California, Killer Entertainment provides live impromptu, or spontaneous and changing, entertainment based on audience reactionsA production can include audience participation in a comedy, drama, or murder mysteryBy understanding the audience, entertainment can be customized for its tastes
Local TVPlanning and production of shows are expensive and require a large viewing audience to attract advertisers to cover the production costsLocal television programming has been consolidated and barely exists anymore but requires knowledge of the market segments interests
Childrens ProgrammingChildrens programming began with locally produced programsLocal news anchors or weathermen often dressed up as clowns to host the showsThe hosts often had such a strong influence on children that parents pressured broadcasters to prohibit the hosts from personally endorsing childrens products
Sports ProgrammingSports programs used to be broadcast only on a regional level until cable televisionNow viewers can watch their teams through either regional sports networks or national sports networks via cable or satellite, sometimes on a pay-per-view basis
Rising Costs of Sports ProgrammingExcessive salaries of sports figures have been pushed onto cable networks which have been pushed onto subscribersTiering was suggested to help with rising costs and involves specific sports programming being offered outside the basic cable or satellite package
Public TV and RadioViewer- and listener-supported TV and radio stations generally have as their mission to entertain and educate their audiencesUsually non-profit organizations financed through grants, corporate donations, and listener contributionsStations know their audiences and and work to please them
IntermissionWhy is different TV programming shown in different cities or regions of the United States?
Baby BoomersBorn between 1946 and 1964Over 76 million baby boomers who are said to reach their peak spending level at age 46Their spending on leisure time and entertainment activities will continue the major economic impact started in 1946
Boomers Wont RetireExpected to soften the line between career and retirementEnjoy recreational activities, personal fitness, and all types of entertainment, from concerts to fine artsThese consumers have discretionary income to pay for the products and services they desire
Segmenting the GroupKnowledge of the customers spending habits, incomes, preferences, occupations and areas of residence can provide the marketing information needed to focus the marketing messageBaby Boomers vary greatly so marketers must be careful when targeting them
Aging PopulationAverage age of the population is increasing1994 it was 342000 it was 35.52035 it will be 39.1Marketers have to keep this in mind
Marketing MythsThe United States has a long history as a melting pot that welcomes all immigrants. However, for marketing purposes it was primarily viewed as a white, Anglo-Saxon nation. This will change if the latest studies by the census bureau prove to be accurate. The bureau estimates the fastest growing segment of society to be Hispanic.
This group contributed 32 percent of the nations population growth from 1990 to 2000. It is expected to contribute 39 percent of the nations growth from 2000 to 2010, 45 percent from 2010 to 2030, and 60 percent from 2030 to 2050. By 2010, the Census Bureau estimates that Hispanic spending in the United States will be nearly $200 billion.
Think CriticallyWhat does this information tell entertainment marketers and marketers in general?
Entertaining the BoomersBoomers are finding more time for entertainmentLarge increase in movie theater audiencesBoomers account for 1/3 of all attendanceBoomers like to see stars of their own age
Understanding All Parts of the GroupMarketers must be careful not to exclude part of the groupTo assume that all people in a large group have the same interests is a costly mistakeBoomers will continue through 2020 to be a major target of entertainment marketing
IntermissionWhy are Baby Boomers important to entertainment marketers?
EncoreAn advantage of customized entertainment over entertainment for the masses isMore people will buy itIt can be impromptu, based on the audienceNo information is needed about the customersNone of the theseBaby Boomers are important to entertainment marketers becauseThey have discretionary incomeThey are interested in leisure-time activitiesThey are expected to be active throughout retirementOf all of these
3. If Baby Boomers are the largest age group in the nation, why is so much sports and entertainment advertising aimed at 12- to 24-year olds?
4. Break down the Baby Boomers into four different niche markets based on age and gender. Name two sports or entertainment products or services to market to each niche.
Class WorkMake a list of people you know that are Baby BoomersWhat niche market do these people fall into?What types of sports and entertainment products/events do they enjoy?What products/events would you try to market to them?