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Lecture 1-January 8

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Herbert Kronzucker

GGR 252 Lecture 1: January 8 Marketing is about how to reach consumers of goods and services. It is about where to best locate to reach consumers of goods and services. 50% of new restaurants fail within 3 years, Why? Because of location. Why map? To give visual, spatial perception. Another word for concentration = clustered Distance decay - further away from cluster, less impact. Intervening opportunity - have a market close by. Case Study: Megaplexes: Old Principles, new structures? Single Cinema Multiplexes Megaplexes (10 to 30 screens) Characteristics: many screens, quality audio, stadium seating, comprehensive concessions and arcades, more choice? Results in a much higher ticket price. Three big players: Famous Players, Cineplex Odeon, AMC Paradox: Growth in number of screens (not number of locations) in a sector (entertainment) that already has rapidly growing competition. Multichannel TV, video, arcades, theme parks, sports stadia, etc. Disservice because distance is further away. Does population growth account for the growth of megaplexes? Explanations? : 1. Demographic lifecycle rather than population growth? ,--4420780.K4NL8-473 - present. Echo kids: after baby boomers, now teen
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