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Week 5 Notes

by: Emily Laurienti

Week 5 Notes MKT 499

Emily Laurienti

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About this Document

These notes cover week 5 lectures on market research along with new and traditional media. If you have any questions feel free to email me at
The Art and Science of Producing and Marketing a Blockbuster
Prof. Gene Delvecchio
Class Notes
Marketing, movies, business, blockbusters
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This 5 page Class Notes was uploaded by Emily Laurienti on Saturday September 24, 2016. The Class Notes belongs to MKT 499 at University of Southern California taught by Prof. Gene Delvecchio in Fall 2016. Since its upload, it has received 4 views. For similar materials see The Art and Science of Producing and Marketing a Blockbuster in Marketing at University of Southern California.


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Date Created: 09/24/16
9/20/16 Blair Witch Discussion  Why did the original do so well and this year’s version flopped? o Original version did very well with the “true story” aspect o One of the first films to advertise widely on the internet o The story is now stale—not edgy enough for today’s audience? Research Process  Environment and Consumer scan o Ideas from social culture, pop culture, headlines, real life stories, new twists on past success, etc. o Look for trends and use them to populate ideas.  Concept test o Largely missing from research for films  Creators often think they know better than consumers  Say that you can’t properly explain an idea’s potential from its concept so audiences may miss out on a great idea if the concept isn’t pitched right o Concept testing can be used to have kids generate ideas as well o To test strength of an idea, present the concept and ask if consumer would definitely see, probably see, might/might not, probably not, definitely not o BASES model takes top two (definitely would see and probably would see) and cuts them to 70% and 30% respectively, to accurately portray answers (consumers tend to overstate if they would see or not) o Script Analysis occurs in this stage by a third party with storytelling knowledge o Storyboard tests—develop storyboards and use them in a 10-15 minute video with a voice over to explain the storyline o Pilot Tests—a kind of concept test in TV; you usually take ten ideas, make two pilots, and one gets picked to go to TV  Product and Marketing Development o Product Development  Film/TV screenings—testing for appeal, story, casting, characters, pacing, acting, humor, etc.  Can be used to change things that consumers don’t like to make the movie more appealing, or can be used to position marketing o Marketing Development  Positioning  Name/title  Posters  Advertising  Star Power  Focus Groups—groups of 6-8 that discuss a movie or trailer in depth in order to show what they do and don’t like  Commercial Testing—show multiple commercials to groups and measure appeal in different demographics to determine where the commercial can be shown  DVD Cover Research—possible different covers for a DVD will be shown to groups and tested for appeal. Can also ask audiences what scenes were most memorable to guide cover ideas  Sales Potential Research—Tracking Research o Measures awareness/interest/intent to make projections o If you have high awareness/high interest/high viewing/high appeal—you’ve done it all right o If you have low awareness/high interest/high viewing/high appeal—you need to spend more money on marketing o If you have high awareness/low interest/low viewing/high appeal—you need to fix your marketing to increase interest o If you have high awareness/high interest/low viewing/decent appeal—you need to change your distribution or you may have a competition problem (you’re good but another movie is better) o If you have high awareness/low interest/low viewing/low appeal—scrap it and stop spending money  In this last case, a studio may decide to go straight to stream or may spend money to try to get a good first week to make some money o Forecasting—use judgement based on past experience along with data. Usually accurate +- 15%  Results of test screenings  Distribution, date, competition  Tracking data on awareness/interest/advance ticket sales  Past experience of similar films  Introduction/Tracking Research o Exit polls o Box office/Ratings o Revenue/Profit Additional Research Tools (beyond entertainment)  Experiential—helps to gain consumer insights, team consumers with executives  Customer Creation Research—have kids draw what they can come up with; this is hard to analyze  Perception Research—have consumers describe someone by their shopping list with one difference—instant coffee vs. traditional. Instant coffee was described as being lazy  Cannibalization Research—is your product increasing sales and stealing from competitors, or is it just shifting your customers from one of your products to another? 9.22.16 Traditional and New Media Traditional Media  TV, print, radio, outdoor  One way with delayed time  Brick and mortar distribution  Good for a mass audience  Print/radio have been decreasing, TV is still highly used New Media  Facebook, Twitter, Pinterest, Instagram, blogs, etc.  Across all industries, digital is 1/3 of all paid media marketing dollars  Two way interaction with real time  Online distribution  Good for niche markets because you can know who you’re targeting New Media in Theatrical movie marketing  Still very experimental, TV and newspaper still dominate  Lower budget films spend a higher % of their marketing dollars on digital advertising  Top 15% of films account for 85% of digital spending  Combos—Don’t Breathe Example o Don’t Breathe spent 55% of marketing budget on digital  Snapchat ad to experience the basement  Vibrating mobile ads  Music video o Traditional media:  Promotions on cable networks  Ads on Adult Swim  Sneak peeks o You need to balance traditional and new media to reinforce the message of the other o If you’re on digital and TV platforms, your ROI gets a 60% bump Traditional Media in Theatrical movie marketing  Media planning/buying o Define target audience, select budget, select media to reach audience o Studios and ad agencies devise media plan for each film o Outside ad/media agency buys the slots by negotiating lowest rates for commercials/print/etc o Analyze results in marketplace and make adjustments  Some star contracts require certain levels of media speed  R rated film advertisements can’t appear where younger audiences might see the ads  Metrics o Reach—the % of households in the target audience that sees the ad at least once o Frequency—the number of times on average someone sees the ad o GRP (Gross Rating Points)—Reach * Frequency o TRP (Target Rating Point)—Reach * Frequency of your specific audience, which gives you a better measure o CPM—the cost to reach 1000 households; measures efficiency  Television o Most popular medium o Delivers both audio and video which is perfect for entertainment o Each rating point = 1% of population o Higher rating = more expensive placement o Upfront Market—70% of slots bought, advertisers lock in rates during the summer upfront for fall shows o Scatter Market—30% bought once season has begun. Movie marketers often fall here because they are unsure of premiere dates and movie potential o Cable—CPM is lower, can target specific demos, but you have to buy more slots to get reach o Challenges  With DVR, it’s hard to tell how many people you will really reach and determine the value of a slot  Radio o Helps to target specific demos o Helps with frequency o Not great for movie/TV because it lacks the visual aspect  Newspaper o 72% of moviegoers read a newspaper each day o Good for advertising theaters and show times for local area o Rates based on size of circulation  Magazines o Monthlies and weeklies o Themes make it easy to reach target demos  Out of Home o Sold based on audience exposure o Can cost thousands/month o Billboards o Street furniture—bus benches o Transits—buses o Alternative—blimps, gas station New Media Overview  Addition to traditional media, not a replacement for  Benefits o Two way connection with specific audiences o Motivate specific influencers/groups o Collect audience data/contacts o Enhance interactivity o Work synergistically with traditional media o Create advanced buzz o Provide metrics to measure results  Objective—create early awareness, excitement, buzz, and purchase  Tactics o Create a sticky website o Create and display news o Make videos go viral o Provide shareable games, apps, etc. o Create community and interactivity o Provide data  Measuring Results o You can get a specific reach and frequency for a specific cost o ROI is determined by your (revenue-cost)/cost o Surveys show how useful an ad was


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