Lesson Plan Course Title: Sports and Entertainment Marketing Session Title: Demographics and Market Segmentation Performance Objective: After completing this lesson the student will define demographics, explain consumer buying motives and types of purchases, and explain how market segmentation is used to meet the needs of different generations. Specific Objectives: • • • • • • • • • • The student will define demographics. The student will describe entertainment marketing. The student will explain demographic segmentation, psychographic segmentation, and behavioral-based segmentation. The student will define market share. The student will describe strategies to match types of entertainment to different generations. The student will describe entertainment distribution for the movie industry. The student will define target market and market segment and marketing strategies to reach these groups. The student will explain benefits derived and comparative advantage for making an entertainment purchase. The student will define Maslow’s Hierarchy of Needs Pyramid. The student will define emotional purchases, rational purchases, and patronage purchases. TERMS • • • • • • • • demographics-common characteristics of a group, such as age range, marital status, gender, ethnic background, income level, and education level entertainment marketing-influencing how people choose to spend their time and money on entertainment demographic segmentation-focuses on information that can be measured such as age, income, profession, gender, education, marital status, and size of household psychographics segmentation-focuses on characteristics that cannot be physically measured, such as values, interests, and lifestyle choice behavioral-based segmentation-focuses on a customer’s attitude toward products and services market share-percentage of total sales of a product or service that a company expects to capture in relation to its competitors emotional purchases-purchases made with little thought during emotional highs or lows rational purchases-take place when individuals recognize needs and wants, assess their priorities and budget, conduct research, compare alternatives, and then make purchases based upon careful thought and sound reasoning Copyright © Texas Education Agency 2011. All rights reserved. 1 • • • • • • • patronage purchases-based on loyalty to a particular brand or product target market-a specific group of consumers you want to reach market segment-a group of consumers within a larger market who share one or more characteristics movie preview-the release of a movie to a limited number of theaters prior to its official release art-house movies-outside the mainstream of popular subjects wide release-involves distributing a movie nationally to a thousand or more theaters at the same time socio-culture issues-trends in customer attitudes, lifestyles, opinions, and demographics Preparation TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.346 (c) (15) (A) …explore how the use of demographics has influenced the industry… 130.346 (c)(15)(B) …differentiate between buying habits and buying preferences… 130.346 (c)(2)(D) …express the importance of target markets… 130.346 (c)(2)(E) …describe advantages and disadvantages of market segmentation and mass marketing… 130.346 (c)(14)(B) …distinguish among sports and entertainment marketing terms… Interdisciplinary Correlations: English: 110.31 (c)(21)(B) … organize information gathered from multiple sources to create a variety of graphics and forms… 110.31 (c)(22)(B) Copyright © Texas Education Agency 2011. All rights reserved. 2 …evaluate the relevance of information to the topic and determine the reliability, validity, and accuracy of sources (including Internet sources) by examining their authority and objectivity… 110.31 (c)(23)(C) … uses graphics and illustrations to help explain concepts where appropriate 110.31 (c)(23)(D) … uses a variety of evaluative tools (e.g., self-made rubrics, peer reviews, teacher and expert evaluations) to examine the quality of the research… Teacher Preparation: Teacher will review the terms in the outline, power point and handouts to become familiar with lesson. Teacher should locate and evaluate various resources and websites before the lesson. Teacher will have assignments and website information ready to distribute to students. References: Sports Business Journal Sports Illustrated Advertising Age (online magazine) Ticketmaster.com Instructional Aids: 1. Display for PowerPoint, websites for assignments and class discussion 2. Sports and Entertainment Marketing, 3rd edition, Kaser & Oelkers, South-Western Cengage Learning: Sports and Entertainment Management, Kaser & Brooks, SouthWestern Cengage Learning. 3. Advertising Age 4. USA Today 5. Sports Illustrated 6. USA Travel and Tourism Guide 7. www.world-newspapers.com/travel.html Materials Needed: 1. Printer paper 2. Assignments and website information ready to distribute to students. (Marketing to the Generations) Direction Sheet 2. Sports Business Journal and Entertainment Industry Economics: A Guide for Financial Success 3. Internet access to Hulu videos Copyright © Texas Education Agency 2011. All rights reserved. 3 Student projects will be displayed to increase interest in Sports and Entertainment Marketing. Equipment Needed: 1. Computer with PowerPoint and Internet Access 2. Projector to Show Internet Sites Undercover Boss Episodes 3. Computers for Students to Conduct Research and Collect Data for Projects Learner Preparation: Explain to students how consumers are divided into different age group (market segments). Then ask students to describe the type of entertainment for their age group, parents’ age group, and grandparents’ age group. Explain how age a major component of demographics that determines the types of sports and entertainment events that will be offered. Emotional purchases are made with little thought. Ask students why it is dangerous to be in a grocery store when they are hungry. Then explain why grocery stores give out free samples of food. Introduction Introduction (LSI Quadrant I): SHOW: Show students different styles of automobiles. ASK: Ask students which type of automobile they like the best. Then ask students which type of automobile would be chosen by their parents and which automobile would be chosen by their grandparents. What characteristics are attractive to each age group? SAY: Different styles of automobiles meet the needs of different age groups. ASK: Ask students to describe a product that they buy regularly. SAY: Explain how this purchase is a buying habit. ASK: Ask students what brand of soda they usually purchase. SAY: Explain how the regular purchase of Coke or Pepsi represents a buying preference. ASK: Ask students to describe characteristics of their age group. SAY: Explain how some of these characteristics make up demographics for the group. Copyright © Texas Education Agency 2011. All rights reserved. 4 Outline Outline (LSI Quadrant II): Instructors can use the PowerPoint presentation, slides, handouts, and note pages in conjunction with the following outline. MI Outline I. Sports Marketing-using sports to market products A. Demographics 1. age range, marital status, gender, ethnic background, income level, and education level 2. finding out a group of spectators’ interests and planning a product or service that the spectators will buy is a function of sports marketing B. Price for Entertainment 1. interest of the market 2. national importance of the event 3. popularity of the participating athletes or celebrities 4. rivalry associated with the contest Notes to Instructor Use PowerPoint and current events as aids. Demographics determine how much a group is capable of spending on sports and entertainment events. Price charged for entertainment events is based upon consumer supply and demand. A limited number of tickets for a popular event will result in higher prices. Copyright © Texas Education Agency 2011. All rights reserved. 5 II. Entertainment Marketing-influencing how people choose to spend their time and money on entertainment A. Product to be Marketed B. How Entertainment is Used to Attract Attention to Other Products C. entertainment-whatever people are willing to spend their money and spare time viewing rather than participating in Use PowerPoint as aid. Entertainment provides the venue to sell related merchandise. Shirts and CDs can be sold at concerts. Sports souvenirs are frequently sold at sporting events. When a team is winning, consumers are willing to spend higher amounts on related merchandise. III. Market Segmentation A. Geographic Segmentation 1. divides markets into physical locations, such as Eastern, Northern, Southern, and Western 2. based on different sections of the city or different climates B. Demographic Segmentation 1. focused on information that can be measured 2. based on age, income, profession, gender, education, marital status, and size of household C. Psychographics Segmentation 1. focused on characteristics that cannot be physically measured 2. decisions based on emotions D. Behavioral-Based Segmentation 1. based on customer’s attitude toward products and services 2. product usage-what products you use and how often 3. benefits derived-satisfaction of spending time with the family or showing team spirit E. Target Customers 1. varied ages and income 2. design a comprehensive plan with a clear Use PowerPoint as aid. Geographics refer to location and climate. Demographics refer to the income, education, age, and marital status of a group. Psychographics include emotions and other characteristics that cannot be physically measured. Behavior-based segmentation is based on customer’s attitude toward products and services. Target customers are considered potential buyers of a product or an entertainment Copyright © Texas Education Agency 2011. All rights reserved. 6 understanding of which specific targeted group is the focus of each phase of the plan 3. targeted customers guide the selection of the media and the promotional mix E. Capture a Market Share 1. every business wants to sell to the maximum number of potential customers 2. market share is the percentage of total sales of a product or service that a company expects to capture in relation to its competitors event. Every competing entertainment event wants to capture a larger market share. IV. Marketing to Different Generations A. Matures B. Baby Boomers C. Generation X D. Generation Y E. niche market-smaller group within the generational group Use PowerPoint as aid. V. Movies A. Movie Preview-the release of a movie to a limited number of theaters prior to its official release B. At-house Movie-movies that are outside the mainstream of popular subjects C. Managing the Costs of Movies 1. high production costs and distribution costs 2. wide release-distributing a movie nationally to a thousand or more theaters at the same time 3. renting movies to watch at home Use PowerPoint as aid. Each age group grew up during a different time in history, has different interests, and offers different opportunities for marketers of entertainment. Movies use different strategies to maintain the interest in new products. Advertising can occur at the theater, on television, and as trailers on movie rentals. Copyright © Texas Education Agency 2011. All rights reserved. 7 VI. Impact of Consumer Trends A. Retro Television-television re-runs B. Game Shows from the past are reappearing in a new format. C. Audience Ratings are carefully monitored by television networks D. Socio-Culture Issues 1. trends in customer attitudes, lifestyles, opinions, and demographics 2. lifestyles-eating out frequently may result in obesity 3. sports and entertainment events cannot count on past successful events for future successes Verbal Linguistic Logical Mathematical Visual Spatial Musical Rhythmic Bodily Kinesthetic Intrapersonal Use PowerPoint as aid. The entertainment industry carefully follows consumer trends ranging from reality television to retro television shows. Trends may involve the rebirth of an old television show. Interpersonal Naturalist Existentialist Application Guided Practice (LSI Quadrant III): Ask students to select a retro television show. Students must describe the generation that will most likely watch the show. Independent Practice (LSI Quadrant III): Marketing to the Generations 1. Research the Babyboomers, Generation X, Generation Y, and Mature Generation. Copyright © Texas Education Agency 2011. All rights reserved. 8 2. 3. 4. 5. Print a sheet of solid information for each group and highlight the main points. Divide a large piece of construction paper into four equal quadrants. Cut out pictures of people that represent each of the four groups mentioned in #1 and glue the pictures in the four titled quadrants. Each quadrant should have a picture of a male and female. Make a bulleted list (at least 20 items) of descriptors for each of the target markets. Type two or three paragraphs describing at least five goods/services that each age group will require. Prepare a PowerPoint that summarizes the four target markets. Your PowerPoint should use information from 1-4. You should have at least 12 slides. Print three slides per sheet. This project will be evaluated using the assigned rubric. Summary Review (LSI Quadrants I and IV): Question: What are demographics? Question: How is the price charged for an entertainment event determined? Question: What is market share? Question: What is a socio-cultural trend? Question: What is entertainment? Question: What is psychographic segmentation? Question: What is a movie trailer? Question: What is retro television? Question: What characteristics of baby boomers should be considered when marketing entertainment? Question: What is geographic segmentation? Question: What does “benefits derived” mean? Evaluation Informal Assessment (LSI Quadrant III): Copyright © Texas Education Agency 2011. All rights reserved. 9 Instructor should observe the work ethic of individuals involved in class discussions and the independent practice activity. Formal Assessment (LSI Quadrant III, IV): Students will be evaluated on their “Marketing to the Generations” by using the assigned rubric. Extension Extension/Enrichment (LSI Quadrant IV): Evaluating Movie Trailers Student Directions Attend a current movie that is appropriate for your age group. Pay careful attention to the movie trailers shown before the movie begins. Take notes about each movie trailer, explain the content of each movie being advertised, and rate the trailer for its effectiveness (increasing your desire to see the movie). Type a one-page paper to describe the movie trailers and the marketing impact. This project will be evaluated using the associated rubric. Copyright © Texas Education Agency 2011. All rights reserved. 10 Sports and Entertainment Marketing Student Directions Independent Practice (LSI Quadrant III): Marketing to the Generations 1. Research the Babyboomers, Generation X, Generation Y, and Mature Generation. Print a sheet of solid information for each group and highlight the main points. 2. Divide a large piece of construction paper into four equal quadrants. Cut out pictures of people that represent each of the four groups mentioned in #1 and glue the pictures in the four titled quadrants. Each quadrant should have a picture of a male and female. 3. Make a bulleted list (at least 20 items) of descriptors for each of the target markets. 4. Type two or three paragraphs describing at least five goods/services that each age group will require. 5. Prepare a PowerPoint that summarizes the four target markets. Your PowerPoint should use information from 1-4. You should have at least 12 slides. Print three slides per sheet. This project will be evaluated using the assigned rubric. Copyright © Texas Education Agency 2011. All rights reserved. 11 Independent Practice (LSI Quadrant III) Marketing to the Generations CATEGORY 20 Excellent 15 Good Research About Extensive research Adequate research the Generations produced high quality for adequate 10 Fair 5 Poor Information for each Inadequate generation information information information Poster Neat, organized, highly informative Organized, informative Information for each Incomplete generation, could information for the use more detail generations Bulleted Lists High quality bulleted lists for each generation 20 items for each generation 20 items for each generation, could use better content Incomplete bulleted lists for each generation Paragraphs About Purchases for Each Generation Well constructed paragraphs describing purchases for each generation Adequate paragraphs describing purchases for each generation Four paragraphs needing more content Insufficient paragraphs describing each generation PowerPoint Highly effective PPT with great graphics and content PPT has insufficient content but needs better graphics PPT needs more content Insufficient content in PPT Points Earned _________ Copyright © Texas Education Agency 2011. All rights reserved. 12 Extension/Enrichment (LSI Quadrant IV) Evaluating Movie Trailers 20 15 CATEGORY 10 5 Amount of Information All topics are addressed and all questions answered with at least 2 sentences about each. All topics are addressed and most questions answered with at least 2 sentences about each. All topics are One or more topics addressed, and most were not addressed. questions answered with 1 sentence about each. Quality of Information Information clearly relates to the main topic. It includes several supporting details and/or examples. Information clearly relates to the main topic. It provides 1-2 supporting details and/or examples. Information clearly Information has little relates to the main or nothing to do with topic. No details the main topic. and/or examples are given. Organization Information is very organized with wellconstructed paragraphs and subheadings. Information is organized with wellconstructed paragraphs. Information is organized, but paragraphs are not well-constructed. The information appears to be disorganized. 8) Paragraph Construction All paragraphs include introductory sentence, explanations or details, and concluding sentence. Most paragraphs include introductory sentence, explanations or details, and concluding sentence. Paragraphs included related information but were typically not constructed well. Paragraphing structure was not clear and sentences were not typically related within the paragraphs. Mechanics No grammatical, spelling or punctuation errors. Almost no A few grammatical grammatical, spelling spelling or or punctuation errors punctuation errors. Many grammatical, spelling, or punctuation errors Points Earned ________ Copyright © Texas Education Agency 2011. All rights reserved. 13