Lecture 1-January 8

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5 Aug 2010
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?
%DE\ERRPHUVµHFKRNLGV¶ERUQ- present. Echo kids: after baby boomers, now teens, early 20s.
New group called 6 pocket kids: teenagers have 4 grandparents (b/c of higher life expectancy) and
parents that give them money before they use their own money.
Lifecycle change. Who? Where?
2. Generative and mutually supportive (complimentary) activities Commercial structure strategy.
Within facilities: concessions $$ between facilities: malls and movies
3. Response to competition: one company, many interests.
Paramount Pictures, Famous Players, Blockbuster video, Multi channel TV (MTV, friends, etc),
VIACOM. Commercial strategy.
4. Locational strategies: More screens fewer locations.
Locational analysis all the more important.
Accessibility: public/private transportation.
Examples: yonge/Sheppard, Scarborough Town Centre, Yonge/Dundas, Yorkdale, 400/7 - Colossus
18, AMC 30 : 48 screens at one location.
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