4Ps concept applied on the movie industry as a whole
PRODUCT
For a movie to selected by the audience on the basis of the content, it needs to be clearly identifiable in its marketing — genre, stars, story, special effects, style all need to be presented aptly. A movie product is the intellectual property that can be ported to a variety of deliverables: theatrical exhibit, non-theatrical exhibit, video tapes, DVDs, CDs of the soundtrack, collectible editions, television and cable broadcast, Internet-served etc. Then there is merchandising such as clothing, toys, games, posters. Another product dimension is that of franchise rights, endorsements, product placements and a host of offshoots that are bought and sold, leased and rented. The movie business is one of the most complexes in the communications industry because of its creativity, its diversity and its continual explosions of technological delivery options.
PRICE
At first glance, pricing in the movie industry seems very standardized. At any multiplex is cinema hall, a movie ticket costs the same for all movies, doesn’t it? But if we look into the broader definition of the movie product just defined, then the prices fluctuate widely.
A distribution contract can be structured in many ways that result in very different returns for the producer, the key creative talent, and even the distributor. Elements that are negotiated include:
Theatrical release schedules
Territories and market segments
Revenue splits, percentages and order of payment
Promotion budgets (P&A)
Apart from these pre consumer stage pricing differences, we see a wide range of pricing structures such as theatrical tickets, group 4-wall rentals, title rentals, title sales, special releases, subscription services, festivals, downloads, delayed broadcasts, pay-per-view, licenses, bundled deals, cable channels and now we have movies and games on cell phones, on iPods -- on electronic billboards.
Scriptwriters sell to producers. Producers sell to investors and distributors. Distributors sell to exhibitors and chain stores and Internet dealers. Retail stores sell to communities (groups) and individuals and families. Families "sell" to friends and more family. Even word of mouth has a price.
Pricing has become a global issue. The release of a DVD has always been timed to protect the theatrical revenue model. But with piracy at record levels globally, a variety of pricing -- and timing -- strategies are being tested, like pricing the DVDs very cheaply.
PLACE
With the ever-inventive entrepreneurial energy in the entertainment world, people find venues for entertainment sales not only through traditional theatres and broadcast, but on street corners, in homes, over the Internet, over phones (caller tunes), through clubs etc. Options for delivery of the movie product are exploding: movies, games, music, news, and educational content. Distribution takes place through theatres, rental stores, sell-through stores, catalogues, non-theatrical groups, the Internet, even cell phones and the latest new media gadget.
PROMOTION
Promotion is a powerful marketing tool, not only during the premier of a new product, but throughout its lifecycle. Producers create the end-product for the consumer, but they seldom market that product directly to the consumer. They market their story to investors and distributors. Distributors market to exhibitors, retailers and sub-distributors. The theatre exhibitors, retailers, store clerks, and Internet strategists market to the end consumers. And then, to top off this complex stew, some consumers even market to other consumers – their family, friends and co-workers.
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