2. Targeting Entertainment
Research Methods
Entertainment Outlets and Venues 2

3. Section 13.1 – Targeting Entertainment Markets – 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 3

4. Section 13.1 – Targeting Entertainment Markets – Importance of Market Research
Marketing efforts will fail if the consumer does not like the product
Marketers want to know what kind of consumers is likely to buy their product before they invest their money into developing and marketing a product
Market 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 4

5. Entertainment Products and Market Research
Section 13.1 – Targeting Entertainment Markets – Importance of Market Research
Entertainment Products and Market Research
Entertainment products are based on creative ideas
A Melody
An Image
A Story
A Character
More difficult to target to a single group of customers
Each product will appeal to a unique group of consumers 5

6. Section 13.1 – Targeting Entertainment Markets – The Market Research Process
Market research helps business leaders understand their markets
The five steps of conducting market research are:
Identify information needs:
Decide what you want to know.
Create research objectives:
Create questions you want answered.
Create a plan to meet your objectives:
Outline research methods.
Design a method for collecting and interpreting data:
Compile results.
Summarize and apply findings:
Adjust marketing strategy based on data. 6

7. Section 13.1 – Targeting Entertainment Markets – 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 7

8. Section 13.1 – Targeting Entertainment Markets – Consumer Demographics
Demographics in the Entertainment Market
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 strategies 8

9. Section 13.1 – Targeting Entertainment Markets – Consumer Demographics
Selling to Target Demographic
Television networks rely on Nielsen ratings to determine which demographic groups are watching particular shows
Nielsen 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 watch
Nielsen survey information can help business direct their advertising to specific target demographic groups 9

10. Section 13.1 – Targeting Entertainment Markets – Consumer Demographics
Creating Product for Target Markets
Prime-time show with high Nielsen ratings = More viewers
Companies with products that interests that target market will buy advertising space during that time
Marketers create products specifically to attract the dollars of the “Prime Time” demographic
Special-Interest Cable Channels
Teens 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 products
Programs and special-interest cable channels are designed for this specific group 10

11. Section 13.1 – Targeting Entertainment Markets – Primary Research
Primary research can allow marketers to solve problems or answer questions about a product before it is released to consumers
Product 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 sell
Testing is done to check if customers will buy a product instead of checking to see if it works
Primary research information is called primary data
Information collected from primary research used specifically for an issue under study 11

12. Section 13.1 – Targeting Entertainment Markets – Primary Research
Secondary Research
Research that already exists on a product or a market
Used 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 12

13. Section 13.2 – Research Methods – Objectives
Explain the difference between qualitative and quantitative research
Identify methods of conducting entertainment market research
Explain the difference between contrived settings and natural settings 13

14. Section 13.2 – Research Methods – Information 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 Testing
Marketers can find out if their product will get a favorable response through market testing
Market 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

15. Section 13.2 – Research Methods – Qualitative 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 product
Qualitative 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 15

16. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
Methods of Qualitative Research
Qualitative research provides information about consumer perceptions, opinions, or feelings about a product or service in entertainment marketing
Asking 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 Interviews
Done in a number of ways with different levels of consumer participation
Personal or online interview methods can be used to obtain information from consumers about products and services
Examples: Personal and online focus groups or mall intercepts
Respondents are consumers who participates in personal interactive interviews or other research methods 16

17. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
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 belong
Examples:
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
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

18. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
Focus Groups
Most in-depth of interviews
Made up of consumers brought together in a controlled environment to discuss or try products or services
A 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 Group
Used to measure consumer opinions
Participants exchange their views and opinions in online chat rooms
Respondents send back their reactions to content streamed to chat room 18

19. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
Mall Intercepts
A market research interview conducted in a public place
Researchers 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 responses
Respondents are not screened beforehand and are chosen at random
Without 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

20. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
Surveys
A questionnaire or series of questions designed to collect specific information
Are completed by the respondent or researcher asking the respondent questions and filling in his/her responses
Only as good as the questions asked
Questions 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 interviews
Disadvantage of surveys are that only a small percentage of mail and Internet surveys are completed and returned by respondents 20

21. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
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 Research
Two effective methods used in quantitative research to find numbers marketers need:
Surveys and Observational research
Provide marketers with information that can be tallied 21

22. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
Surveys
Effective at collecting quantitative data that relates to consumer behavior
Survey 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 22

23. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
Observational Research
A method of collecting data by observing respondents in contrived or natural settings
Process:
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

24. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
Contrived Settings
Contrived settings are set up and prearranged
Process:
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 prefer
Artificial setting because the choices of products and locations do not reflect the choices and factors involved in a real shopping situation 24

25. Section 13.2 – Research Methods – Research Methods in Entertainment Marketing
Natural Settings
Researchers can watch how consumers behave and shop without affecting their choices
Researchers immerse themselves in shopping situation to observe how customers react to certain products
Methods:
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 25

26. Section 13.2 – Research Methods – Media 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 reactions
Marketing research firms:
RIVA: Research in Values and Attitudes
Hugh Bowen and Associates Interactive Research
SIS International Research
Audience Research and Analysis 26

27. Section 13.2 – Research Methods – Media Entertainment Research
Screening Rooms
Used by marketers to show consumers previews, TV shows, movies, commercials, and movie trailers
Designed to simulate the experience of seeing a film on a big screen with theater-quality sound
Provide 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 team
Data collected in screening room is combined with larger audience responses and analyzed using graphed data
Live-Action and Recreational Entertainment Research
Allows marketers to learn about tourists behavior while visiting tourist destinations 27

28. Section 13.3 – Entertainment Outlets and Venues – Objectives
Identify criteria for selecting outlets and venues
Determine factors that must be in place prior to new venue construction 28

29. Section 13.3 – Entertainment Outlets and Venues – Other Entertainment Marketing Businesses / Outlets and Venues
Market research affects both entertainment products and decisions regarding entertainment outlets and venues
Outlets and Venues
Outlet is a place where a marketed product is released and made available
Venue (also an Outlet) is a place where live events are presented
Outlet and Venue managers are in charge of marketing their locations to the entertainment companies that produce concerts, movies, live events, and shows
Functions of Outlet managers:
Win a contract to host event
Ticket sales
Promotion
Event management 29

30. Section 13.3 – Entertainment Outlets and Venues – Outlets and Venues
Size, Location, and Population
Outlet and venue marketers try to match the entertainment event with the appropriate venue
Factors playing a role in event marketing:
Venue size, location, and Area population
Venue Marketers consider the limitations and advantages of their venue when booking an act
Event type and target demographic group will dictate where an event can take place
Factors to consider:
Seating capacity
Ticketing and merchandising outlet capacity
Parking capacity
Restroom and food facilities 30

31. Section 13.3 – Entertainment Outlets and Venues – Outlets and Venues
Income from Venues
Venues can create hundreds of jobs through their construction and operation
Venue 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 money
Benefits of an income-generating venue make projects worthwhile to taxpayers
Most difficult part of making a venue profitable is keeping events booked and selling the venue to capacity for all events 31