1. Choose the Channel
Chapter 8

2. Global Channels of Distribution
Lesson 8.1

3. Lesson Essential Questions
1. How has distribution channels adapted over
time to fit the needs of customers?
2. How has the change of distribution channels
affected how marketers sell their product to
customers?
3. Compare and contrast different types of
distribution channels and determine how the
different types of channels work in different
situations.

4. Distribution
• One of the four elements of the marketing mix.
• Involves the transportation of a product or
service.
• Moves the product to the customer.

5. Free Enterprise
• An economic system that allows the
unregulated supply and demand of products to
drive the economy.
• Controlled Market
• Supply, pricing, and distribution policies are set
directly by the government.

6. Facts About Trading
Entertainment
• International Products are discouraged through
restrictions and tariffs.
• United States has no formal barriers to the
import of audiovisual entertainment.
• European countries try to reserve at least half
of their programming to shows with European
origin.

7. Sports and Entertainment
• Available via two forms (channels):
• Live Events
• Media

8. Live Events
• Historically, the only way to view an event was
to view it live.
• Amphitheaters
• Oval shaped outdoor theaters with tiered seating
around a central staging area.
• Venue
• The facility where the event is held.
• Limited to the number of people who can be
accommodated.

9. Media
• Mass media
• Means of distributing an event to a large volume of
people – the masses.
• Radio
• Television
• Internet
• Allows for massive marketing opportunities beyond
what is available with a live audience.

10. Platforms
• Types of delivery systems.
• What are different types of delivery systems?

11. Sports Distribution
Lesson 8.2

12. Lesson Essential Questions
1. How are media types determined for different
sporting events?
2. How do organizations within sports affect the
distribution of sporting events?
3. How are media types determined for different
entertainment events?
4. Compare and contrast how sports and
entertainment are distributed differently to
fans.

13. Marketers Challenge
• Motivate people to actively participate in sports
and activities that interest them.
• Rising costs of professional sports may reduce
people’s interest.
• Smart marketers will fill the gap by promoting
and forming recreational sports.

14. Amateur Athletes
• Someone who is not paid, but plays for
enjoyment and challenge.
• Can be of any age and have physical
challenges.

15. The Balancing Act
• Sports facilities need to be available where they
are needed.
• Community leaders must recognize the need
for recreational space when planning.
• Must consider environmental impact:
• Backpacking
• Off-road driving
• Rock climbing

16. The Relation
• Participation in recreational sports is directly
related to income.
• Prices needed for equipment
• Access to good facilities
• Difference in private and public facilities

17. Title IX
• An amendment in 1972 to federal education
law that prohibits discrimination against
females in school sports.
• Schools must provide females with access

18. Winning Teams
• Economic implications for the community,
region, and state?

19. NCAA’s Role
• Governing body of college and university
athletic programs.
• Determines:
• How postseason bowl games:
• Are licensed
• Organizations must pay for
• Both teams’ travel
• Participation expenses
• Made Available to the fans

20. Rankings Role
• Determined based on:
• Past team performance
• Talent
• Team schedules
• Televised games mean more money.
• BCS Rankings
• USA Today Coaches’ Poll
• Harris Interactive College Football Poll
• Average of six computer rankings

21. Economies Role
• Market driven:
• Sports are distributed based on popularity.
• Offered at the highest price the market will bear.
• Government driven:
• Sports are not always readily available.
• Distribution channels are tightly controlled.

22. Cartel
• A combination of independent businesses
formed to regulate professional sports.
• Example:
• A number of independent sport teams grouped
together and governed by a league agreement.
• Federal antitrust laws prohibits cartels, special
legislation exempts professional sports
leagues.

23. League Agreement
• 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.

24. Starting a New Team
• Regions with a large potential customer base
• Owners request public funds to subsidize the
new team.
• Local government must have the support of the
tax payers.
• Consider subsidies as an investment.
• Existing leagues’ owners determine price.
• Expansion fee that is distributed amongst the
owners.

25. Fun Facts:
• What does it take to host a Super Bowl?
• Requirements
• 20 pages of NFL requirements including:
• 20,000 available hotel rooms
• 65 limousines available for NFL use only
• 1,000 busses available for transporting fans
• Many private and public golf courses nearby
• Gains:
• Lodging, food, beverage, and entertainment: $129 Million
• Sales Taxes: 3.2 Million
• Net proceeds: $913,397

26. Entertainment Distribution
Lesson 8.3

27. Movies
• Made with the demographics of a particular
audience in mind.
• Location of movie theaters is key.
• Timing plays a part in the total marketing
strategy.

28. Movie Preview
• The release of a movie to a limited number of
theaters prior to its official release.
• Generates buzz about the movie that helps
promote it.

29. Art House Movies
• Movies outside the mainstream of popular
subjects.
• Independent films

30. Expenses
• Low budget films
• Costing less than $250,000 to produce.
• Low advertising
• Show at film festivals
• Internet advertising
• Released in off season

31. Wide Release
• Involves distributing a movie nationally to a
thousand or more theaters at the same time.

32. Mass-Market Retailers
• DVDs – Digital Video Discs
• POP displays – Point of Purchase
• Houses movies or CDs
• Effective promotional tool

33. New Distribution Techniques
• Online DVD rental business
• Netflix
• Blockbuster
• DVDs are convenient size and weight
• Easily mailed

34. Distribution of Music
• How it evolved:
• Live performances – only
• 12’’ grooved vinyl disk played on phonographs
• Audiotape
• Compact Disc
• Digital files
• First models forced users to sacrifice quality over quantity
• Docking Stations
• Enables iPods to be connected to speakers that project the
music throughout a room.

35. Technology and Distribution Media
Lesson 8.4

36. Lesson Essential Questions
1. How has change in technology affected the
distribution of sports and entertainment
marketing?
2. Compare and contrast the advantages and
disadvantages of old and new technology and
identify how marketers can appropriately use
both.
3. How can marketers prepare themselves for a
world of changing technology?

37. Media Merge
• Lines between the various information,
communication, and entertainment media have
become more blurred.
• Entertainment companies:
• Branched into multiple venues
• Creating cross-promotional opportunities
• Integrating new technologies

38. Podcasts
• A way of distributing multimedia files over the
Internet for playback on computers, iPods, cell
phones, and other mobile devices.
• Television stations are using Podcasts as a
way of distributing programs.

39. HDTV
• Estimated that by 2008, 29 million homes will
have HDTV.
• FCC issued a mandate:
• All television transmissions must convert from
analog to digital format by August 2009.
• Consumers will need to purchase a set-top
converter.

40. Radio
• Converting to digital formats.
• XM, Sirius, WorldSpace
• Three Components:
• Satellites that orbit the earth.
• Ground stations that transmit signals to the
satellites.
• Radio receivers that unscramble the signals for the
listeners.

41. Web Broadcasts
• Groups of television networks, production
studios, and related entertainment businesses
that produce shows or provide services for
other members in the group.
• Vertical Integration:
• When one company controls several different areas
of the same industry.

42. Internet Music Revolution
• File-Sharing – making files available for others
to download.
• Piracy – unauthorized copying

43. MP3
• A digital audio encoding and compression
format designed to greatly reduce the amount
of data required to represent audio.

44. Section Review
The parts of a satellite radio system include all of
the following except:
A. Satellites that orbit the earth
B. Ground Stations that transmit signals to the
satellites
C. Radio receivers that unscramble the signals
D. MP3 software that compresses the unscrambled
signals to digital format.

45. Section Review
Conversion to digital TV was driven by
A. Consumers
B. The FCC
C. The broadcast industry
D. TV manufacturers.

46. Chapter Review
A combination of independent businesses
formed to regulate production, pricing, and
marketing of a product is called:
A. Vertical integration
B. A cartel
C. Free enterprise
D. A podcast.