1. Branding and entertainment
Section 12.1 PAGE 270
JIGSAW 5 DIFFERENT SEGMENTS OF SECTION

2. ORIGINS:
Stone Age!
Pottery
1266 Bakers marked their bread in England

3. Disney:
Only G-RATED?

4. FRANCHISE TRADEMARK Mcdonalds
Most McDonald's owner/operators have entered the corporation by purchasing an existing restaurant. To open a McDonald's franchise, however, requires a total investment of $1-$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000.
Mcdonalds
FRANCHISE
TRADEMARK

5. franchises
DID YOU KNOW?

6. Jay z
ROCAWEAR
The 2007 sale of Jay Z's clothing company Rocawear pulled in $204 million. The rapper made another $150 million from his deal with entertainment giant Live Nation. Concerts have heaped another $240 million on the Jay Z net worth mountain

7. P-diddy Puff daddy sean combs
SEAN JOHN
 SEAN JOHN, A PRIVATELY HELD COMPANY CREATED AND OWNED BY SEAN "DIDDY" COMBS, MADE ITS FASHION DEBUT WITH A MEN'S SPORTSWEAR COLLECTION IN WITH ANNUAL RETAIL SALES IN THE UNITED STATES OF OVER $525 MILLION, SEAN JOHN REMAINS ONE OF THE MOST IMPRESSIVE FULL LIFESTYLE BRANDS IN THE US.

8. Price decisions
Textbook page 278

9. CAN YOU THINK OF ANY OTHER PRODUCT PLACEMENTS?
Product Placement- the appearance of a product as a prop in a film or tv show, in exchange for a fee paid by the products advertiser
CAN YOU THINK OF ANY OTHER PRODUCT PLACEMENTS?

10. LETS TALK ABOUT PROFIT….....
Gross Profit- is the revenue minus the cost of goods sold Net Profit – is gross profit minus expenses, or the costs beyond the costs of production.
LETS TALK ABOUT PROFIT….....
Direct Costs?
Overheads?
WHAT IS THE DIFFERENCE?

11. MCdonalds facts
Net sales 2,700,000
52,000 per week
7,400 per day

12. PRICE GOALS MEET OR BEAT COMPETITIION GETTING A SPECIFIC ROI
RECOVERING COSTS
Those are the 3 factors that shape a companies goals!
PRICE GOALS

13. RECOVERING COSTS…. Have you ever recovered costs on something?
One successful album can pay for 20 unsuccessful albums???!!??
The book talks a lot about CD’s but artists don’t have the burden of album printing costs
But what costs are still there? PRO_ _ _ _ ION COSTS
RECOVERING COSTS….
Have you ever recovered costs on something?

14. ROI AKA RETURN ON investment
One dollar put in the bank might bring a return of two to four cents on the dollar, before taxes with very little risk.
One dollar can be invested in the production of a CD for a new band and earn five to ten cents per dollar, with very high risk of total investment loss – or it can earn millions of dollars.
ROI AKA RETURN ON investment

15. Profit Margin – is the difference between the expenses and the retail price, expressed as a percentage or a dollar amount.
PROFIT MARGIN
Calculate this:
SALES = 100,000
NET PROFIT = 20,000

16. Pricing in television and radio advertising
Reach and Frequency = an advertising term meaning the number of people exposed to an advertisement and the number of times they are exposed to it. Record companies pay radio stations up to $1mill in promotional airplay costs b4 a record is a hit.
Pricing in television and radio advertising

17. Pricing in the TV INDUSTRY
The Tonight Show – 50 Seasons 60 Minutes – 36 Seasons Monday Night Football 34 Seasons 20/20 27 Seasons The more seasons the more profit! Reruns is where the production companies make the big bucks? No Production Costs!!!
Pricing in the TV INDUSTRY

18. Pricing in the Film industry
DVD SALES
TOYS CD
BOOKS
VIDEO GAMES
MERCHANDISE
RENTALS
LARGE POPCORN 92% MARGIN
MEANS THAT IF YOU PAID $10.00
THE MOVIE THEATER MADE $9.20 Profit

19. http://www. businessinsider
concession-prices-markups-popcorn
VIDEO

20. Pricing in the music industry

22. Concert pricing

23. Are Radio Air Play Costs Legal, the book states that record labels may pay radio stations up to 1 million dollars in promotional air play costs before a record is a hit…...
What does this mean, is this PAYOLA?
Go ONLINE and research what these costs are and you be the judge....
RADIO AIR PLAY COSTS!