Targeting Entertainment Targeting Entertainment Research Methods Research Methods 2 Entertainment Outlets and Venues Entertainment Outlets and Venues

Targeting EntertainmentTargeting Entertainment

Research MethodsResearch Methods

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Entertainment Outlets and VenuesEntertainment Outlets and Venues

Section 13.1 – Targeting Section 13.1 – Targeting Entertainment Markets Entertainment Markets – – Objectives Objectives

Explain how market research is used to identify target marketsDiscuss how demographics are used in entertainment marketingExplain the use of primary and secondary data

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Section 13.1 – Targeting Entertainment Section 13.1 – Targeting Entertainment Markets – Importance of Market ResearchMarkets – Importance of Market Research

Marketing efforts will fail if the consumer does not like the productMarketers want to know what kind of consumers is likely to buy their product before they invest their money into developing and marketing a productMarket 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

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Section 13.1 – Targeting Entertainment Section 13.1 – Targeting Entertainment Markets – Importance of Market ResearchMarkets – Importance of Market Research

Entertainment products are based on creative ideas A Melody An Image A Story A CharacterMore difficult to target to a single group of customers Each product will appeal to a

unique group of consumers

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Entertainment Products and Market ResearchEntertainment Products and Market Research

Section 13.1 – Targeting Entertainment Section 13.1 – Targeting Entertainment Markets Markets – – The Market Research ProcessThe Market Research Process

Market research helps business leaders understand their marketsThe five steps of conducting market research are:

1. Identify information needs: Decide what you want to know.2. Create research objectives: Create questions you want answered.3. Create a plan to meet your objectives: Outline research methods.4. Design a method for collecting and interpreting data: Compile results.5. Summarize and apply findings: Adjust marketing strategy based on data.

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Section 13.1 – Targeting Entertainment Section 13.1 – Targeting Entertainment Markets – Consumer DemographicsMarkets – 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

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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 strategies8

Demographics in the Entertainment MarketDemographics in the Entertainment Market


Television networks rely on Nielsen ratings to determine which demographic groups are watching particular showsNielsen 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 watchNielsen survey information can help business direct their advertising to specific target demographic groups

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Selling to Target DemographicSelling to Target Demographic


Creating Product for Target MarketsCreating Product for Target MarketsPrime-time show with high Nielsen ratings = More viewersCompanies with products that interests that target market will buy advertising space during that timeMarketers create products specifically to attract the dollars of the “Prime Time” demographic

Special-Interest Cable ChannelsSpecial-Interest Cable ChannelsTeens 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 productsPrograms and special-interest cable channels are designed for this specific group 10

Section 13.1 – Targeting Entertainment Section 13.1 – Targeting Entertainment Markets Markets – – Primary ResearchPrimary Research

Primary research can allow marketers to solve problems or answer questions about a product before it is released to consumersProduct 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 sellTesting is done to check if customers will buy a product instead of checking to see if it worksPrimary research information is called primary data

Information collected from primary research used specifically for an issue under study

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Section 13.1 – Targeting Entertainment Section 13.1 – Targeting Entertainment Markets Markets – – Primary ResearchPrimary Research

Secondary ResearchSecondary ResearchResearch that already exists on a product or a marketUsed 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

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Section 13.2 – Research Section 13.2 – Research Methods – Objectives Methods – Objectives

Explain the difference between qualitative and quantitative researchIdentify methods of conducting entertainment market researchExplain the difference between contrived settings and natural settings

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Section 13.2 – Research Methods – Section 13.2 – Research Methods – Information AdvantageInformation 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 TestingMarket TestingMarketers can find out if their product will get a favorable response through market testingMarket 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

Section 13.2 – Research MethodsSection 13.2 – Research Methods – –

Qualitative and Quantitative ResearchQualitative 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 productQualitative 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 Why a demographic consumes a product

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Section 13.2 – Research MethodsSection 13.2 – Research Methods – – Research Methods in Entertainment MarketingResearch Methods in Entertainment Marketing

Methods of Qualitative ResearchMethods of Qualitative ResearchQualitative research provides information about consumer perceptions, opinions, or feelings about a product or service in entertainment marketingAsking 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 InterviewsPersonal and Interactive InterviewsDone in a number of ways with different levels of consumer participationPersonal or online interview methods can be used to obtain information from consumers about products and services

Examples: Personal and online focus groups or mall interceptsRespondents are consumers who participates in personal interactive interviews or other research methods 16


Personal and Interactive Interviews – cont.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

belongExamples:

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


Focus GroupsFocus GroupsMost in-depth of interviewsMade up of consumers brought together in a controlled environment to discuss or try products or servicesA 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 GroupOnline Focus GroupUsed to measure consumer opinionsParticipants exchange their views and opinions in online chat roomsRespondents send back their reactions to content streamed to chat room

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Mall InterceptsMall InterceptsA market research interview conducted in a public placeResearchers 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 responsesRespondents are not screened beforehand and are chosen at randomWithout 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


SurveysSurveysA questionnaire or series of questions designed to collect specific informationAre completed by the respondent or researcher asking the respondent questions and filling in his/her responsesOnly as good as the questions askedQuestions 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 interviewsDisadvantage of surveys are that only a small percentage of mail and Internet surveys are completed and returned by respondents

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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 Many of a demographic consumes a

product

Methods of Quantitative ResearchMethods of Quantitative ResearchTwo effective methods used in quantitative research to find numbers marketers need:

Surveys and Observational research Provide marketers with information that can be tallied

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SurveysSurveysEffective at collecting quantitative data that relates to consumer behaviorSurvey 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

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Observational ResearchObservational ResearchA method of collecting data by observing respondents in contrived or natural settingsProcess:

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



Contrived SettingsContrived SettingsContrived settings are set up and prearrangedProcess:

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 preferArtificial setting because the choices of products and locations do not reflect the choices and factors involved in a real shopping situation

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Natural SettingsNatural SettingsResearchers can watch how consumers behave and shop without affecting their choicesResearchers immerse themselves in shopping situation to observe how customers react to certain productsMethods:

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

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Media Entertainment ResearchMedia 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 reactionsMarketing research firms:

RIVA: Research in Values and Attitudes Hugh Bowen and Associates Interactive Research SIS International Research Audience Research and Analysis

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Media Entertainment ResearchMedia Entertainment Research

Screening RoomsScreening RoomsUsed by marketers to show consumers previews, TV shows, movies, commercials, and movie trailersDesigned to simulate the experience of seeing a film on a big screen with theater-quality soundProvide 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 teamData collected in screening room is combined with larger audience responses and analyzed using graphed data

Live-Action and Recreational Entertainment ResearchLive-Action and Recreational Entertainment ResearchAllows marketers to learn about tourists behavior while visiting tourist destinations

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Section 13.3 – Entertainment Section 13.3 – Entertainment Outlets and VenuesOutlets and Venues – Objectives – Objectives

Identify criteria for selecting outlets and venuesDetermine factors that must be in place prior to new venue construction

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Section 13.3 – Entertainment Outlets and Section 13.3 – Entertainment Outlets and Venues – Venues – Other Entertainment Marketing Other Entertainment Marketing Businesses / Outlets and VenuesBusinesses / Outlets and Venues

Market research affects both entertainment products and decisions regarding entertainment outlets and venues

Outlets and VenuesOutlet is a place where a marketed product is released and made available Venue (also an Outlet) is a place where live events are presentedOutlet and Venue managers are in charge of marketing their locations to the entertainment companies that produce concerts, movies, live events, and showsFunctions of Outlet managers:

Win a contract to host event Ticket sales Promotion Event management

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Section 13.3 – Entertainment Outlets Section 13.3 – Entertainment Outlets and Venues – Outlets and Venuesand Venues – Outlets and Venues

Size, Location, and PopulationSize, Location, and PopulationOutlet and venue marketers try to match the entertainment event with the appropriate venueFactors playing a role in event marketing:

Venue size, location, and Area populationVenue Marketers consider the limitations and advantages of their venue when booking an actEvent type and target demographic group will dictate where an event can take placeFactors to consider:

Seating capacity Ticketing and merchandising outlet capacity Parking capacity Restroom and food facilities

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Section 13.3 – Entertainment Outlets Section 13.3 – Entertainment Outlets and Venues – Outlets and Venuesand Venues – Outlets and Venues

Income from VenuesIncome from VenuesVenues can create hundreds of jobs through their construction and operationVenue 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 moneyBenefits of an income-generating venue make projects worthwhile to taxpayersMost difficult part of making a venue profitable is keeping events booked and selling the venue to capacity for all events

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Documents

Targeting Entertainment Targeting Entertainment Research Methods Research Methods 2 Entertainment Outlets and Venues Entertainment Outlets and Venues