Unit 8


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Unit 8

  1. 1. Choose the Channel Chapter 8
  2. 2. Global Channels of Distribution Lesson 8.1
  3. 3. Lesson Essential Questions <ul><li>How has distribution channels adapted over time to fit the needs of customers? </li></ul><ul><li>How has the change of distribution channels affected how marketers sell their product to customers? </li></ul><ul><li>Compare and contrast different types of distribution channels and determine how the different types of channels work in different situations. </li></ul>
  4. 4. Distribution <ul><li>One of the four elements of the marketing mix. </li></ul><ul><li>Involves the transportation of a product or service. </li></ul><ul><li>Moves the product to the customer. </li></ul>
  5. 5. Free Enterprise <ul><li>An economic system that allows the unregulated supply and demand of products to drive the economy. </li></ul><ul><li>Controlled Market </li></ul><ul><ul><li>Supply, pricing, and distribution policies are set directly by the government. </li></ul></ul>
  6. 6. Facts About Trading Entertainment <ul><li>International Products are discouraged through restrictions and tariffs. </li></ul><ul><li>United States has no formal barriers to the import of audiovisual entertainment. </li></ul><ul><li>European countries try to reserve at least half of their programming to shows with European origin. </li></ul>
  7. 7. Sports and Entertainment <ul><li>Available via two forms (channels): </li></ul><ul><ul><li>Live Events </li></ul></ul><ul><ul><li>Media </li></ul></ul>
  8. 8. Live Events <ul><li>Historically, the only way to view an event was to view it live. </li></ul><ul><li>Amphitheaters </li></ul><ul><ul><li>Oval shaped outdoor theaters with tiered seating around a central staging area. </li></ul></ul><ul><li>Venue </li></ul><ul><ul><li>The facility where the event is held. </li></ul></ul><ul><ul><li>Limited to the number of people who can be accommodated. </li></ul></ul>
  9. 9. Media <ul><li>Mass media </li></ul><ul><ul><li>Means of distributing an event to a large volume of people – the masses. </li></ul></ul><ul><ul><ul><li>Radio </li></ul></ul></ul><ul><ul><ul><li>Television </li></ul></ul></ul><ul><ul><ul><li>Internet </li></ul></ul></ul><ul><ul><li>Allows for massive marketing opportunities beyond what is available with a live audience. </li></ul></ul>
  10. 10. Platforms <ul><li>Types of delivery systems. </li></ul><ul><ul><li>What are different types of delivery systems? </li></ul></ul>
  11. 11. Sports Distribution Lesson 8.2
  12. 12. Lesson Essential Questions <ul><li>How are media types determined for different sporting events? </li></ul><ul><li>How do organizations within sports affect the distribution of sporting events? </li></ul><ul><li>How are media types determined for different entertainment events? </li></ul><ul><li>Compare and contrast how sports and entertainment are distributed differently to fans. </li></ul>
  13. 13. Marketers Challenge <ul><li>Motivate people to actively participate in sports and activities that interest them. </li></ul><ul><li>Rising costs of professional sports may reduce people’s interest. </li></ul><ul><li>Smart marketers will fill the gap by promoting and forming recreational sports. </li></ul>
  14. 14. Amateur Athletes <ul><li>Someone who is not paid, but plays for enjoyment and challenge. </li></ul><ul><li>Can be of any age and have physical challenges. </li></ul>
  15. 15. The Balancing Act <ul><li>Sports facilities need to be available where they are needed. </li></ul><ul><li>Community leaders must recognize the need for recreational space when planning. </li></ul><ul><li>Must consider environmental impact: </li></ul><ul><ul><li>Backpacking </li></ul></ul><ul><ul><li>Off-road driving </li></ul></ul><ul><ul><li>Rock climbing </li></ul></ul>
  16. 16. The Relation <ul><li>Participation in recreational sports is directly related to income. </li></ul><ul><ul><li>Prices needed for equipment </li></ul></ul><ul><ul><li>Access to good facilities </li></ul></ul><ul><ul><li>Difference in private and public facilities </li></ul></ul>
  17. 17. Title IX <ul><li>An amendment in 1972 to federal education law that prohibits discrimination against females in school sports. </li></ul><ul><li>Schools must provide females with access </li></ul>
  18. 18. Winning Teams <ul><li>Economic implications for the community, region, and state? </li></ul>
  19. 19. NCAA’s Role <ul><li>Governing body of college and university athletic programs. </li></ul><ul><li>Determines: </li></ul><ul><ul><li>How postseason bowl games: </li></ul></ul><ul><ul><ul><li>Are licensed </li></ul></ul></ul><ul><ul><ul><ul><li>Organizations must pay for </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Both teams’ travel </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Participation expenses </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Made Available to the fans </li></ul></ul></ul>
  20. 20. Rankings Role <ul><li>Determined based on: </li></ul><ul><ul><li>Past team performance </li></ul></ul><ul><ul><li>Talent </li></ul></ul><ul><ul><li>Team schedules </li></ul></ul><ul><li>Televised games mean more money. </li></ul><ul><li>BCS Rankings </li></ul><ul><ul><li>USA Today Coaches’ Poll </li></ul></ul><ul><ul><li>Harris Interactive College Football Poll </li></ul></ul><ul><ul><li>Average of six computer rankings </li></ul></ul>
  21. 21. Economies Role <ul><li>Market driven: </li></ul><ul><ul><li>Sports are distributed based on popularity. </li></ul></ul><ul><ul><li>Offered at the highest price the market will bear. </li></ul></ul><ul><li>Government driven: </li></ul><ul><ul><li>Sports are not always readily available. </li></ul></ul><ul><ul><li>Distribution channels are tightly controlled. </li></ul></ul>
  22. 22. Cartel <ul><li>A combination of independent businesses formed to regulate professional sports. </li></ul><ul><li>Example: </li></ul><ul><ul><li>A number of independent sport teams grouped together and governed by a league agreement. </li></ul></ul><ul><li>Federal antitrust laws prohibits cartels, special legislation exempts professional sports leagues. </li></ul>
  23. 23. League Agreement <ul><li>Controls the marketing mix and governs the distribution of the games, including the locations of the teams and the number of teams allowed to operate within the league. </li></ul>
  24. 24. Starting a New Team <ul><li>Regions with a large potential customer base </li></ul><ul><li>Owners request public funds to subsidize the new team. </li></ul><ul><li>Local government must have the support of the tax payers. </li></ul><ul><li>Consider subsidies as an investment. </li></ul><ul><li>Existing leagues’ owners determine price. </li></ul><ul><ul><li>Expansion fee that is distributed amongst the owners. </li></ul></ul>
  25. 25. Fun Facts: <ul><li>What does it take to host a Super Bowl? </li></ul><ul><ul><li>Requirements </li></ul></ul><ul><ul><ul><li>20 pages of NFL requirements including: </li></ul></ul></ul><ul><ul><ul><ul><li>20,000 available hotel rooms </li></ul></ul></ul></ul><ul><ul><ul><ul><li>65 limousines available for NFL use only </li></ul></ul></ul></ul><ul><ul><ul><ul><li>1,000 busses available for transporting fans </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Many private and public golf courses nearby </li></ul></ul></ul></ul><ul><ul><li>Gains: </li></ul></ul><ul><ul><ul><li>Lodging, food, beverage, and entertainment: $129 Million </li></ul></ul></ul><ul><ul><ul><li>Sales Taxes: 3.2 Million </li></ul></ul></ul><ul><ul><ul><li>Net proceeds: $913,397 </li></ul></ul></ul>
  26. 26. Entertainment Distribution Lesson 8.3
  27. 27. Movies <ul><li>Made with the demographics of a particular audience in mind. </li></ul><ul><li>Location of movie theaters is key. </li></ul><ul><li>Timing plays a part in the total marketing strategy. </li></ul>
  28. 28. Movie Preview <ul><li>The release of a movie to a limited number of theaters prior to its official release. </li></ul><ul><li>Generates buzz about the movie that helps promote it. </li></ul>
  29. 29. Art House Movies <ul><li>Movies outside the mainstream of popular subjects. </li></ul><ul><ul><li>Independent films </li></ul></ul>
  30. 30. Expenses <ul><li>Low budget films </li></ul><ul><ul><li>Costing less than $250,000 to produce. </li></ul></ul><ul><ul><li>Low advertising </li></ul></ul><ul><ul><ul><li>Show at film festivals </li></ul></ul></ul><ul><ul><ul><li>Internet advertising </li></ul></ul></ul><ul><ul><li>Released in off season </li></ul></ul>
  31. 31. Wide Release <ul><li>Involves distributing a movie nationally to a thousand or more theaters at the same time. </li></ul>
  32. 32. Mass-Market Retailers <ul><li>DVDs – Digital Video Discs </li></ul><ul><li>POP displays – Point of Purchase </li></ul><ul><ul><li>Houses movies or CDs </li></ul></ul><ul><ul><li>Effective promotional tool </li></ul></ul>
  33. 33. New Distribution Techniques <ul><li>Online DVD rental business </li></ul><ul><ul><li>Netflix </li></ul></ul><ul><ul><li>Blockbuster </li></ul></ul><ul><ul><ul><li>DVDs are convenient size and weight </li></ul></ul></ul><ul><ul><ul><li>Easily mailed </li></ul></ul></ul>
  34. 34. Distribution of Music <ul><li>How it evolved: </li></ul><ul><ul><li>Live performances – only </li></ul></ul><ul><ul><li>12’’ grooved vinyl disk played on phonographs </li></ul></ul><ul><ul><li>Audiotape </li></ul></ul><ul><ul><li>Compact Disc </li></ul></ul><ul><ul><li>Digital files </li></ul></ul><ul><ul><ul><li>First models forced users to sacrifice quality over quantity </li></ul></ul></ul><ul><ul><ul><li>Docking Stations </li></ul></ul></ul><ul><ul><ul><ul><li>Enables iPods to be connected to speakers that project the music throughout a room. </li></ul></ul></ul></ul>
  35. 35. Technology and Distribution Media Lesson 8.4
  36. 36. Lesson Essential Questions <ul><li>How has change in technology affected the distribution of sports and entertainment marketing? </li></ul><ul><li>Compare and contrast the advantages and disadvantages of old and new technology and identify how marketers can appropriately use both. </li></ul><ul><li>How can marketers prepare themselves for a world of changing technology? </li></ul>
  37. 37. Media Merge <ul><li>Lines between the various information, communication, and entertainment media have become more blurred. </li></ul><ul><li>Entertainment companies: </li></ul><ul><ul><li>Branched into multiple venues </li></ul></ul><ul><ul><li>Creating cross-promotional opportunities </li></ul></ul><ul><ul><li>Integrating new technologies </li></ul></ul>
  38. 38. Podcasts <ul><li>A way of distributing multimedia files over the Internet for playback on computers, iPods, cell phones, and other mobile devices. </li></ul><ul><li>Television stations are using Podcasts as a way of distributing programs. </li></ul>
  39. 39. HDTV <ul><li>Estimated that by 2008, 29 million homes will have HDTV. </li></ul><ul><li>FCC issued a mandate: </li></ul><ul><ul><li>All television transmissions must convert from analog to digital format by August 2009. </li></ul></ul><ul><ul><li>Consumers will need to purchase a set-top converter. </li></ul></ul>
  40. 40. Radio <ul><li>Converting to digital formats. </li></ul><ul><li>XM, Sirius, WorldSpace </li></ul><ul><li>Three Components: </li></ul><ul><ul><li>Satellites that orbit the earth. </li></ul></ul><ul><ul><li>Ground stations that transmit signals to the satellites. </li></ul></ul><ul><ul><li>Radio receivers that unscramble the signals for the listeners. </li></ul></ul>
  41. 41. Web Broadcasts <ul><li>Groups of television networks, production studios, and related entertainment businesses that produce shows or provide services for other members in the group. </li></ul><ul><li>Vertical Integration: </li></ul><ul><ul><li>When one company controls several different areas of the same industry. </li></ul></ul>
  42. 42. Internet Music Revolution <ul><li>File-Sharing – making files available for others to download. </li></ul><ul><li>Piracy – unauthorized copying </li></ul>
  43. 43. MP3 <ul><li>A digital audio encoding and compression format designed to greatly reduce the amount of data required to represent audio. </li></ul>
  44. 44. Section Review <ul><li>The parts of a satellite radio system include all of the following except: </li></ul><ul><ul><li>Satellites that orbit the earth </li></ul></ul><ul><ul><li>Ground Stations that transmit signals to the satellites </li></ul></ul><ul><ul><li>Radio receivers that unscramble the signals </li></ul></ul><ul><ul><li>MP3 software that compresses the unscrambled signals to digital format. </li></ul></ul>
  45. 45. Section Review <ul><li>Conversion to digital TV was driven by </li></ul><ul><ul><li>Consumers </li></ul></ul><ul><ul><li>The FCC </li></ul></ul><ul><ul><li>The broadcast industry </li></ul></ul><ul><ul><li>TV manufacturers. </li></ul></ul>
  46. 46. Chapter Review <ul><li>A combination of independent businesses formed to regulate production, pricing, and marketing of a product is called: </li></ul><ul><ul><li>Vertical integration </li></ul></ul><ul><ul><li>A cartel </li></ul></ul><ul><ul><li>Free enterprise </li></ul></ul><ul><ul><li>A podcast. </li></ul></ul>