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UNIT 2 – SE MKTG, CASE STUDIES #1 -- “Worldwide Buzzing” They frequently stake out their subjects while lurking around a corner, hunkering down in a car, or perching in a tree. They’re not the police—they’re freelance photographers, called paparazzi. Often traveling in groups, they track celebrities for candid snapshots and quick cash. The word “paparazzi” – Italian for “buzzing insects”—comes from the 1959 film LaDolce Vita (“The Good Life”). An annoying photographer in the movie was named Signor Paparazzo. You don’t have to be Italian to be a paparazzo, but you do have to be quick, aggressive, and patient. Some paparazzi make a career out of following a single celebrity. These avid photographers often bother entertainers and sports figures, whose pictures are sold to the highest bidder. Privacy laws do little good. The tabloid market is big, and consumers are eager to have the latest unauthorized photos of Madonna, Shaq, or DeNiro. #2 – “Fantasy Sports Go High Tech” Fantasy sports began as a low-tech hobby. Sports fans scanned newspapers for statistics and created virtual teams of real-world athletes. The successes of the fantasy teams depended upon those players’ actual performances. Now fans are paying big money to companies that offer participation in online fantasy-sports leagues. According to a study commissioned by the Fantasy Sports Trade Association, revenues from fantasy sports subscriptions are expected to reach $300 million by 2006. #3 – “Fan Clubs Grow On-line” Fan clubs for athletes and celebrities make good marketing tools. Thanks to the Internet, thousands of official and unofficial clubs are formed. They are run by fans, corporations, and celebrities. Some fan clubs charge fees, such as Tiger Woods’ online fan club at $30. Other Web sites are free. For example, fanemporium.com, which operates for a group of musical celebrities, charges no dues. Sites offer newsletters, merchandise, contests, event updates, and more. #4 – “Beyond the Gridiron” Once upon a time, the Super Bowl was a sports contest, pitting the newly formed National Football League and American League against each other. That was in 1967. Since then the Super Bowl has become much more than a football championship. Today the Super Bowl is a media event that makes millions of dollars for stadiums, advertisers, television networks, and record companies. Even entertainment trade magazines such as Daily Variety analyze ratings and marketing strategies, as well as game plays, to track profit potential. Beginning in 1982, the Super Bowl has consistently pulled television audiences of over 70 million viewers—and sometimes over 90 million. The network that broadcasts the game profits by charging high rates for advertisers to reach those viewers. In 2004, companies paid CBS an average of $2.25 million for 30 seconds of commercial time. The high cost of purchasing time raises the stakes for producing commercials. Some sponsors debut new commercials at the Super Bowl. In addition to innovative ads and corporate sponsorships, the Super Bowl features performers from the recording industry in pre-game, halftime, and post-game shows. Stars such as U2, Sting, Aerosmith, and Shania Twain are included to attract a broader audience than the football game could draw by itself. That means higher ratings for the network and higher profits for advertising sponsors.