Chapter 13 Entertainment Market Research and Outlets

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. Explain the difference between qualitative and quantitative research. Identify methods of conducting entertainment market research. Identify criteria for selecting outlets and venues.

Case Study – Bands Online

Section 13.1 Targeting Entertainment Markets

The Importance of Market Research Before investing money in developing and marketing a product, marketers want to know what kind of consumer is likely to buy the product and why. Market research can help determine how to best approach the consumer. Market researchers gather, record, and analyze data about an industry, product, or market in which specific businesses sell products. This information allows marketers to target products to the consumers who will buy them. The “target market” is comprised of who is in the market for the product, what these consumers want, and how best to give it to them.

Entertainment Products and Market Research Unlike typical consumer products, entertainment products are based on creative ideas, such as a melody, an image, a story, or a character. Products based on creative ideas are more difficult to target to a single group of consumers. Because each song, video game, or book is unique, each product will appeal to a unique group of consumers.

The Market Research Process (5 Steps) 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.

Consumer Demographics Knowing consumers requires market research to understand who they are and how they think. Consumer groups can be divided into market segments that are categorized by demographic characteristics such as age, income, occupation, gender, ethnicity, education, marital status, geographical location, and lifestyle choices.

Psychographics Psychographics are studies of consumers based on their attitudes, interests, and opinions. Ex.: “Family values” may refer to a particular psychographic group that consists of suburban families who are active in religious, school, and/or community activities.

Demographics in the Entertainment Industry In the entertainment industry, researching demographic information is important when marketers want to know who is watching, attending, listening to, reading, or buying their merchandise. With this knowledge, marketers can more effectively develop, package, and promote their products to their target markets.

Selling to a Target Market Information such as Nielsen ratings can help businesses direct their advertising to a specific target demographic group. Ex.: A movie studio that is promoting an action film to year old men, will not run ads for the film during daytime tv. Why?

Creating Product for Target Markets If a prime time network show earns high Neilsen ratings it means more viewers are watching that show. For this reason, companies with a product that interests that target market will buy advertising space during this time. Monday Night Football viewer might want to see _____________ products advertised?

Special Interest Cable Channels MTV, Comedy Central, and Nickelodeon have opened up advertising possibilities to markets that were not there before. BET (Black Entertainment Television) appeals directly to the African American demographic. DIY (Do It Yourself) network, appeals to consumers who like do it yourself home projects.

Psychographics Different demographic groups respond to products in different ways, based on their attitudes and behaviors. For example, an electronic game may have the same appeal to everyone in the18-25 male demographic, but gamers in urban areas may think the design should be different.

Primary Research Primary research is original research done to answer a specific question or solve a problem. Usually marketers do research on a single product.

Product Testing “Product testing” is an assessment of a product to see if it works, meets, industry standards for safety, and is user friendly. In market research, researchers are more interested in finding out how customers will react to the product – and if it will sell.

Primary Data “Primary data” is the information collected from primary research used specifically for an issue under study.

Secondary Research “Secondary research” is research that already exists on a product or a market that has been gathered by a research group.

Trend A “trend” is a pattern, habit, or tendency following a general course.

Secondary Data “Secondary data” is information collected from secondary or preexisting research for a purpose other than the current study.

Section 13.2 Research Methods

Information Advantage Questionnaires in shopping malls? Pop-up surveys? These are two examples of methods that market researchers us to obtain primary and secondary data.

Market Testing Through market testing, marketers can find out if their products will get a favorable response. 3 examples of market testing might be 1)_____________ 2)_____________ 2)_____________ 3)_____________ 3)_____________

Qualitative and Quantitative Research “Qualitative Research” – data that measure qualities, such as people’s reactions or perceptions. “Quantative Research” – data expressed as amount in numbers, such as number of people in a stadium.

Research Methods in Entertainment Marketing Marketers use several research methods to collect both qualitative and quantitative data. These methods include: interviews, focus groups, mall intercepts, surveys, and observational research.

Personal and Interactive Interviews Personal and interactive interviews are done with different levels of customer participation. Researchers can use personal or online interview methods to obtain information from customers about products or services.

Respondent A “respondent” is the consumer who participates in personal interactive interviews. Interview start with general questions such as: 1) How old are you? 2) What do you do for a living? Later the interview progresses to more specific questions: 1) Do you go to theaters to watch movies, or do you rent them and watch at home?

Focus Groups Focus groups are the most in depth type of interview. A focus group is made up of consumers brought together in a controlled environment to discuss or try products or services.

Online Focus Groups Online focus groups function the same way a face to face group would, except that the participants exchange views and opinions in an online chatroom.

Mall Intercepts A “mall intercept” is a market research interview conducted in a public place, such as a mall. Asking questions in person gives researchers a chance to interact with consumers and gather information that is more difficult to get through noninteractive methods.

Surveys A “survey is a questionnaire or series of questions designed to collect specific information. Surveys are a good way to collect qualitative data on consumer preferences or opinions.

Methods of Quantitative Research Surveys Observational Research Contrived and Natural Settings Mystery Shoppers and Ethnography

Surveys – Quantitative Research “Statistics” are a collection of numerical data that can be compared, analyzed, and interpreted. Good data for quantitative surveys depends on the kinds of questions asked. Ex.: A simple yes or no question can show that 85 out of 100 people surveyed answered yes when asked if they buy CD’s online.

Observational Research “Observational Research” is a method of collecting data by observing respondents in contrived or natural settings. Cameras or spotters are placed in the research environment to gather this type of information. They observe consumer behavior in different situations, or in relation to the product.

Traffic Count A “traffic count” is a measure of how many people stop or do not stop to look at an ad or store display.

Contrived and Natural Settings “Contrived settings” are settings that are set up and prearranged, are created in a research facility where client products are tested along with a sample of other products chosen by researchers. “Natural settings” – researchers can watch how consumers behave and shop without affecting their choices. Two methods used to observe consumers in a natural setting are: 1) mystery shoppers, and 2) ethnography.

Mystery Shoppers A “mystery shopper” is a market researcher who poses as a shopper to observe how consumers and retailers behave in a shopping situation.

Ethnography “Ethnography” is the study of social and cultural behavior and habits. For example, if researchers were interested in the music and beverage choices of urban year old men and women, they might visit a venue by this demographic group and observe their behavior and buying habits.

Media Entertainment Research Media entertainment products include movies, music videos and DVD’s, commercials and electronic games. Media entertainment uses a wide variety of qualitative and quantitative methods to test their products on consumers and observe their reactions.

Screening Rooms Media entertainment marketers use screening rooms to show consumer previews, tv shows, movies, commercials, and movie trailers. These screening rooms are designed to simulate the experience of seeing a film on a big screen with theater-quality sound.

Live Action and Recreational Entertainment Research Live action and recreational entertainment products include concerts, theme parks, and casinos. Because many of these sources of entertainment involve travel, marketers learn about tourists’ behavior while visiting these attractions. This info helps marketers effectively promote their products.

Section 13.3 Entertainment Outlets and Venues

Outlets and Venues An “outlet” is a place where a marketed product is released and made available, or where it is placed – another one of the P’s in the marketing mix. A “venue” is also an outlet, but it is a place where live events are presented. An example is ____________.

Types of Entertainment Outlets and Venues Movie theaters Live performance theaters Concert halls, amphitheaters, and stadiums Nightclubs, restaurants, and dancehalls Video-game arcades Arenas and stadiums for sports and nonsports events Galleries and museums Amusement parks

Size, Location, and Population Outlet and venue marketers try to match the entertainment event with the appropriate venue. They consider factors such as size, location, and population. Give an example of a music group that would not sell out a big stadium. Where might they host their concert?_________

Capacity “Capacity” is the maximum number of people that a venue or outlet can accommodate. For example, Madison Square Garden has a capacity of ______________.

Income From Venues Venues create hundreds of jobs through their construction and their operation.

Venue Risks and Considerations Key factors must be in place before construction is planned: 1) The local population must be willing and able to support a venue. 2) The venue must be safe and functional. 3) The venue promoters must be able to book shows and fill seats.

Successful Marketing Strategies Understanding your product, your customer, and your product outlets is essential to creating a successful marketing strategy. Marketing professionals gain this understanding by conducting market research. By using marketing research firms or conducting primary or secondary research, marketers can be fully informed about their products, customers, and outlets before making marketing decisions that will affect the success of a product or service they sell.

Choosing a Target Market (100 Total Points/10 Points Each) Chart products and their target markets. Chart 10 products from commercials, newspapers, or magazines – pay attention demographic characteristics such as gender, age, and ethnicity. Product Media Target Market Clues 1)2) 3) 4) 5) 6) 7) 8) 9)10)

Assessing Your Listening Skills Effective market researchers need good listening skills. This means being an active listener and giving the person you are interviewing complete attention when he or she is speaking. The simple assessment below will help you assess your active listening skills. Read each statement. Then check Yes or No based on whether these statements relate to you. Yes No 1) My intention is to be an active and effective listener. 2) I concentrate on the meaning and not on every word. 3) I focus on the speaker and use eye contact. 4) I am aware of emotions and nonverbal behavior. 5) I withhold judgment until I hear the entire message. 6) I am open to new information and ideas. 7) I seek to understand the speaker’s point of view. 8) I do not interrupt, argue, or plan my response. I listen. 9) I am mentally and physically alert and attentive. 10) I paraphrase to clarify my understanding. Total Yes Responses Count your Yes responses. If you marked Yes to seven or more questions, you are an active and effective listener.

Checking Concepts/Critical Thinking/Cross-Curriculum Skills (100 Total Points/10 Points Each) 1) Explain the importance of market research. 2) Describe the market research process. 3) Define demographics and psychographics. 4) Explain primary research and secondary research. 5) Compare qualitative and quantitative research. 6) Describe methods of qualitative research. 7) Name two types of observational research. 8) Explain how demographics can be used to market a CD. 9) A computer game company wants to expand its selection. What form of research should the company use to find out which new games to add, and why? 10) How might ethnography help your local newspaper sell more subscriptions to non-English speaking customers.