Product and Price Decisions: Entertainment

Product and Price Decisions: EntertainmentBranding and EntertainmentPrice DecisionsBranding and EntertainmentTo explain entertainment ______ _______, brand _______, and _____________To identify brand ____________ used by entertainment companiesTo explain how ___________ are brandsThe Role of Branding___________ and ____________-among most important elements in marketing mix todayLabeling cars, an airline, soup or moviesFor ex: Campbells means soupPopular brand _______are vital to the success of companies and productsOrigins of BrandingEarliest known brands were seen on ___________ of cattle in cave murals in Southern FranceStone Age5000 year old _________ has its makers __________________In _______, England passed a _____ that required bakers to mark their breads for identification1700s-1800s-growth of __________ ___________ led to increased need for manufacturers to distinguish theirs from their competition

Brand Identity TodayChoosing a ________ __________ is an important product decisionBrand may include all the _______ and ___________ you have regarding a particular ___________, _________, or ________Brand __________-consistent feeling or image that consumers recognize when encountering the brandCould purchase an unrecognized item based on brand recognition Ex: Samsung products, Trilogy moviesBrand ________ -brand name and symbolSometimes a slogan (catchy phrase) is developed too

Different IdentitiesDifficult to be ____________Ex: Universal Studios: products are varied and widespread (various types of genres, ages, etc.)Walt Disney-family style, G-ratedIf compromised or lost-cost Disney millions of $

Fixed Brand identityConsistency leads to more focused ____________But does limit the market (Ex: Disney only family)Dont branch out b/c you risk what you have created(Ex: Disney-controversial actors or films)What to do? Create other ___________ owned by your corporation but _____ identified with the company ______Hollywood Pictures, Touchstone PicturesSplash with Tom Hanks, Dick Tracy with Warren Beatty, Al Pacino, Madonna, Open Range with Kevin Costner

The value of trademarks__________ you see everyday that help you identify with goods/services you buyEx: Golden arches (McDonalds), peacock logo (NBC), mountain in movie (Paramount Studios)__________ ownershipProvide ______ protection for the brand and products____________-(tie products with a movie)-very profitable for product maker and movie makerOther Types:_______mark-a trademark identified by a sound Roaring lion (MGM)_______mark-a trademark identified by a specific movement Winged horse that leaps off the movie screen (Tri-Star Films)

Entertainment brands on the internetJust as ___________ as conventional marketing_______ channel for marketing entertainment b/c of ____________ capabilitiesNeed domain name

Music and the internetIn 2003, ___________ against those who engaged in illegal ___________ of music (__________)Industry believed it __________ the ____________ of artists and record companiesSome artists agreed with the ____________ but others felt people would always find a way to get free musicApple ipod legal distribution of music and maintained control of music distribution

Celebrities as brandsNot just performersBrands-monetary value, just like Nike, PepsiBrand ____________-development and introduction of ____ products that _______the brand and take advantage of the recognition and image of an ____________ brand nameMadonna-Gap hired her for commercialsGap believed she appealed to many ages and would project the idea that Gap sells products for all generationsJ Lo-clothing lineP Ddiddy-clothesFranchisesEntertainment franchise-series of films, programs, character portrayals planned to expand the characters activities in a seriesFilmsTV FranchisesCrossover artistsRelated to a performers image or brand is crossover___________-an expansion of the popular appeal of an artist or work by achieving success in another market or styleFor ex: Shania Twain-Country to popShaquille ONeal-bball to rap music to filmsPurpose: Increase mainstream ___________ and stay in the public eyeArchived BrandsA brand strategy To become a classic strategy, legendary statusElvis PresleyQuestionsWhy can a performer be considered a brand?What is brand extension?What is meant by a crossover artist?Price DecisionsTo define gross profit and net profitTo identify different pricing goalsTo identify factors that determine CD and concert ticket pricesRevenue, profit, lossRevenue-total ________ brought in through the _______ of goods and servicesCan include ticket sales, merchandise sales, or concession sales, advertising income from selling spots on TV or radioProduct placement-___________ of a product as a _____ in a _____ or TV _____, in exchange for a ___paid by the products advertiser.For ex: German automaker BMW paid $15 mill to MGM to have its cars in James Bond moviesMGM includes this revenue as part of rev for filmProfitGross profit-________ minus the _____ of the goods sold________-_______=_______Examples of costs for film: film negatives, theater, actors salaries, stage production, etc.Net profit-gross profit _______ __________ (or those costs out of production)These costs are most commonly-taxesCould also be advertising, PR, selling costs

PRICING STRATEGIES AND GOALSIn the entertainment field, it is similar to _______pricing for goods.Marketers must determine ______ for pricingCould be based on: recovering costsgetting a specific return on investmenthitting profit goalsmeeting or beating the competitionRecovering CostsDifficult to make a _________ in the entertainment industryCDs released by record companies do not recover the cost of production and distributionPrices of CDs must be set high enough to recover the costsProfits from successful CDs help to offset those of no success

Return on investment______-for every ______ the company puts into a project, the goal is to get the maximum ______For ex: an entertainment company could look at these options:1 dollar put in a bank might bring a return of two to four cents on the dollar, before taxes, with very little risk1 dollar could be invested in producing a CD by a new band and earn 5-10 cents per dollar, with a very high risk of total loss of investment-or the slim chance it oucld earn millions of dollars_________ production pricingThe ________ rate is very highMarketers must look at a variety of pricing goals