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Marketing Mix of Sony Pictures Entertainment, Inc.

Marketing Mix of Sony Pictures Entertainment, Inc.

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Marketing Mix of Sony Pictures Entertainment, Inc.
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Marketing Mix of Sony Pictures Entertainment, Inc. - December 6th, 2010

Sony Pictures Entertainment, Inc. (SPE) is the television and film production/distribution unit of Japanese multinational technology and media conglomerate Sony. Its group sales in 2010 has been reported to be of $7.2 billion.

On September 28, 1989, Japanese corporation, Sony acquired the American film and television production company Columbia Pictures Entertainment, Inc. (Columbia Pictures, TriStar Pictures, etc.) from The Coca-Cola Company for US$1 billion.[6][7][8] The company was renamed Sony Pictures Entertainment in 1991. The next day, Sony also acquired the Guber-Peters Entertainment Company for $200 million (formerly Barris Industries, Inc.) when Sony hired Peter Guber and Jon Peters to head CPE. Sony has since created numerous other film production and distribution units, such as creating Sony Pictures Classics for art-house fare, by forming Columbia TriStar Pictures (also known as the Columbia TriStar Motion Picture Group) by merging Columbia Pictures and TriStar Pictures in 1998, revitalizing Columbia's former television division Screen Gems, and expanded its growth on April 8, 2005, when a consortium led by Sony and its equity partners acquired the legendary Hollywood studio Metro-Goldwyn-Mayer in a deal worth nearly US$5 billion.[9] On June 4, 2008, SPE's wholly-owned group 2JS Productions B.V. acquired Dutch production company 2waytraffic N.V., famous for Who Wants to Be a Millionaire? and You Are What You Eat for Ł114.3 million ($223.2 million in US dollars).

The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.

Product

The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering.

Product decisions include aspects such as function, appearance, packaging, service, warranty, etc.

Price

Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.

Place

Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions.

Distribution decisions include market coverage, channel member selection, logistics, and levels of service.

Promotion

Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them.

Promotion decisions involve advertising, public relations, media types, etc.
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