Chapter 11 Application Exercise - Activities

Chapter 11 Exercise Activities

BONUS POINTS:

1. Is playbill a good, a service or both?

Playbill can be considered both a good and a service. Because it can be “possessed” it is a good - contradictory to the definition of service. However, this is obviously a service provided to companies who wish to advertise to a specific (affluent) group of people who attend theatre. Playbill is also a service, as it doesn’t cost the theatre or the theatergoer a single cent. They provide the audience information about the show such as cast bios, agenda, and other information about theatre in general. This service to the theatre, saves the box office money and time from printing and producing these materials in-house and allows them to keep costs low.

2. What is Playbill’s marketing mix?

Product: Playbill is a free program provided to theatre audiences all across the country at no charge.

Core and supplementary services: Their core service is to provide information about the show the audience is about to see as well as information about theatre regionally and nationally to the audience. Their supplementary service is to provide companies a way to reach affluent consumers very effectively. They also provide a service to box offices by producing the much needed programs to them and the audience at no cost.

Mass customization: Partnership with Sirius Satellite radio and providing exclusive content online.

Service mix: To be the one source of information about theatre in the United States. Programs, online, radio.

Promotion: Their main promotion strategy is in the box office where their programs are offered to the audience at no charge. They have worked to maintain a monopoly among information sources in this arena. They also promote their services online and through a partnership with Sirius Satellite Radio and through other partnerships with hotels, restaurants, and others.

Pricing: Free to the box office and audience. Obtains revenue through advertising.

3. How does the partnership with Sirius affect Playbill’s marketing mix? Will it increase demand for playbill’s service?

The alliance with Sirius is a great move for Playbill. Both companies are national communication entities and for playbill, the use of Sirius’ national audience will generate more interest in theatre and could boost attendance in theatres nationwide (increasing the demand for its product). This alliance will also dramatically increase Playbill’s brand recognition. Additionally, the cross-promotion of their services on the radio to generate website traffic could allow Playbill to generate more advertising revenue online.