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Film Marketing

Finola Kerrigan

AMSTERDAM  BOSTON  HEIDELBERG  LONDON  NEW YORK  OXFORD

PARIS  SAN DIEGO  SAN FRANCISCO  SINGAPORE  SYDNEY  TOKYO
Butterworth-Heinemann is an imprint of Elsevier
Butterworth is an Imprint of Elsevier
Linacre House, Jordan Hill, Oxford OX2 8DP, UK
30 Corporate Drive, Suite 400, Burlington, MA 01803, USA
First edition 2010
Copyright Ó 2010, Finola Kerrigan. Published by Elsevier Ltd. All rights reserved.

The right of Author Name to be identified as the author of this work has been asserted in
accordance with the Copyright, Designs and Patents Act 1988

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recording or otherwise without the prior written permission of the publisher
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email: [email protected]. Alternatively you can submit your request online by
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No responsibility is assumed by the publisher for any injury and/or damage to persons
or property as a matter of products liability, negligence or otherwise, or from any use
or operation of any methods, products, instructions or ideas contained in the material
herein. Because of rapid advances in the medical sciences, in particular, independent
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British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
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visit our web site at books.elsevier.com

Printed and bound in Great Britain

10 11 12 10 9 8 7 6 5 4 3 2 1
Contents

ACKNOWLEDGEMENTS ................................................................................. ix

CHAPTER 1 Introduction
What is Marketing? ......................................................................3
Supply Chain Management and Marketing......................................6
Defining Film Marketing ...............................................................9
Outline of the Book ....................................................................11

CHAPTER 2 The Origins and Development of the Film Industry

Hollywood’s Domination of the Global Box Office ..........................18
Historical Development of the Film Industry .................................20
Why Does American Still Dominate? ............................................35

CHAPTER 3 Development and Market Research in the Film Industry

Early Forms of Market Research ..................................................42
Perception of market Research in the Film Industry ......................44
Development – Project based Versus the Slate Approach ...............47

CHAPTER 4 Structural Considerations and Film Marketing

Is There a Need for Policy Intervention in the Film Industry? .........58
The Supra-national Policy Environment........................................60
Pan-European Policy ..................................................................61
The European Commission..........................................................61
Eurimages .................................................................................64
Development of Film Policy in the UK .........................................65
The Current Policy Environment in the UK Film Industry ...............69
Developments in the South Korean Film Industry..........................71
The Danish Film Industry............................................................75
The Nigerian Film Industry .........................................................78

CHAPTER 5 The Film Marketing Mix

The Role of the Star – Actors ......................................................82
The Star – The Non-Actor Star ....................................................88
Script/Genre ..............................................................................92

v
vi Contents

Age Classification ......................................................................96

Release Strategy ........................................................................98

CHAPTER 6 Consumer Selection of Films

Motives Underlying Film Consumption .......................................105
The Impact of the Film Marketing Mix on Consumption Choices...109
Establishing Trust ....................................................................111
The Role of the Critics..............................................................113
Word of Mouth.........................................................................115
Electronic Word of Mouth .........................................................116
What Prevents Film Consumption? ............................................119

CHAPTER 7 Film Marketing Materials

Marketing to a Sales Agent .......................................................125
The Unit Publicist....................................................................127
The Unit Photographer .............................................................128
Visual Representation...............................................................129
Film Posters ............................................................................131
Making Sense of Film Posters ...................................................133
Film Trailers ............................................................................140
The Purpose of the Trailer.........................................................141
Television and Print Advertising ................................................146
Media Buying ..........................................................................146

CHAPTER 8 The Film Marketing Calendar

Key Figures in the Film Industry................................................151
Release Strategies ...................................................................158
Film Festivals and Markets .......................................................163

CHAPTER 9 Social and Societal Marketing and Films

Social and Political Impact of Art (Film) ....................................176
Film as Educator (The Social Marketing Function) ......................177
Marketing Practice and Society .................................................180
Social and Societal Marketing ...................................................188

CHAPTER 10 The Impact of Technology on Film Marketing Practices

Convergence in the Creative Industries ....................................194
The Future of Distribution – Dealing With
Decreasing Revenue and Piracy...............................................198
Social Media and Film Marketing – What are the Majors Doing? ..200
Finding Alternative Routes to Market .......................................202
New Economics in the Film Industry .......................................206
 Contents vii

CHAPTER 11 Conclusions
Limitations............................................................................211
Logic of the Book...................................................................212
Summary ..............................................................................222

REFERENCES ............................................................................................. 225

SUBJECT INDEX ......................................................................................... 257
AUTHOR INDEX .......................................................................................... 263
Acknowledgements

The road to finishing this book feels like a very long one, and many people
have helped in getting me here. It is inevitable that some will be inadvertently
excluded from this list. During the writing of this book I was unsure of
whether I should thank Anna Fabrizio who first persuaded me to write this
book for Elsevier and Francesca Ford who followed her for her continued
enthusiasm for the project. Having eventually come to the end of the project
I am very grateful to both of them for their encouragement. Thanks are also
due to Marie Hooper, Amy Laurens and Sarah Long for their patience and
cooperation. I am very grateful to Suja Narayana for meticulously proof-
reading this manuscript. Particular thanks are due to Sumanta Barua who
acted as research assistant in helping to prepare this manuscript. Without
Sumanta’s tireless efforts, this process would have taken even longer and my
lack of attention to detail would have gone unchallenged. Thanks are also due
to Huda Abuzeid for her help in trying to secure permissions for this book
and to Dirk Vom Lehn for providing me with comments.
Thanks are also due to my parents for many things, not least for taking
out cinema advertising for their business when I was a teenager and therefore
providing me with free weekly access to the delights of the Gaiety Cinema in
Sligo. This started me off as a regular film consumer. Back in the late 1980s
and early 1990s Sligo did not benefit from a wealth of international cinema,
but I did get access to popular US, UK and Irish films. Thanks to my great
friends at University College Galway who queued up to watch the film
society films and braved the alleged mice to see great International films in
the cinemas of Galway. Particular thanks must go to the Tuesday Night
Cinema Group although I have become an unreliable member over the past
few months in my final dash to the finish with this book.
I have had the pleasure of working with a number of supportive and
inspiring colleagues since I first started to take a serious interest in the film
industry and film marketing issues and I would like to extend my thanks to
Gisela Gauggel-Robinson, Alvaro Mason, Anne Boillot, and other colleagues
who encouraged my work and study of the film industry during and after my

ix
x Acknowledgements

time at the MEDIA Programme. My doctoral research was generously funded

by the University of Hertfordshire Business School and I am very grateful for
the support and friendship that I received from colleagues there. I am grateful
to my colleagues at King’s College London, past and present for the inter-
esting discussions, feedback on my work and words of encouragement which
have created an environment in which I have been able to develop my
research.
Over the last decade, I have formally interviewed, informally chatted with
and benefitted from the expertise of many film industry professionals. I am
very grateful to them all for their time and the insight which they offered me
over the course of my study of the film industry. I was particularly fortunate
to have the opportunity to participate in the excellent Strategic Film
Marketing Workshop during my doctoral study which provided me with
invaluable insight into film marketing practice. Thanks are due to Paul
Nwulu who helped me navigate my way through the Nigerian film industry.
Finally, I would like to thank Susanna Capon for inviting me to teach film
marketing on the MA Film and TV Producing at Royal Holloway and Gillian
Gordon for allowing me to continue. I have benefitted greatly from this
experience and each one of my students on that course has contributed
significantly to my thinking around film marketing. To teach such knowl-
edgeable and talented students has been a privilege.
Sections of chapter two have previously been published in Kerrigan, F.
2004. Marketing in the Film Industry in Kerrigan, F., Fraser, P. and
Özbilgin, M. (eds.) Arts Marketing, Oxford: Elsevier.
 CHAPTER 1

Introduction

As the opening scene for this book on film marketing, this chapter will follow
the format of all good opening scenes. In doing so, it will introduce the key CONTENTS
characters of this book: marketing and the film industry. In positioning this
What is Marketing?
book, as all good marketers should, in film terms it is a cross-over. Although
its core audience is quite niche, i.e. students, researchers and academics with Supply Chain
an interest in the marketing elements of film, there is a desire for the book to Management
‘cross-over’ into other audience groups, those with an interest in film more and Marketing
broadly and marketers from other sectors who are curious about the world of Defining Film
film marketing. For this reason, this chapter will both introduce the layout as Marketing
well as introduce the readers to the main characters, marketing and the film
Outline of the Book
industry. As volume after volume has already been written about marketing,
what it is, what it is not and what it could or should be, I will not rehearse all
of these debates. For that reason, readers may well dispute the presentation of
marketing within these pages. My presentation of marketing theory is
derived from my study of film marketing and from the elements of marketing
and wider management theory that I see as helpful in understanding film
marketing processes. Like all areas of marketing, film marketing concerns
both the production and the consumption of film and this dual focus is
present in this book. In this book, film marketing, or the marketing of film is
viewed as primarily concerned with how filmmakers and marketers position
the film within the minds of consumers in order to encourage consumption
of their film. Scholars of audience reception studies, film studies and related
areas have studied film consumption from a number of perspectives and this
book will refer to these studies, but does not claim to develop theories of
audience reception. Rather, the focus on consumers is concerned with how
consumers interpret the marketing messages projected by filmmakers and
marketers and how this influences selection and enjoyment of film and on

Film Marketing
Copyright Ó 2010, Finola Kerrigan. Published by Elsevier Ltd. All rights reserved. 1
2 C H A P T ER 1: Introduction

recent technological developments which have seen the relationship between

filmmakers and consumers of film deepen.
The advantage of writing a book on film marketing is that it is possible to
draw very widely on literature which can aid our understanding of film
marketing processes without the constraints of submission to a high quality
journal. The nature of contemporary academic life, which gives rhetorical
credence to the idea of interdisciplinary work, means that academics wishing
to publish their work in good quality journals must adhere to the orthodoxy
of that journal. This in itself often informs the research design employed by
the researcher, the literature they draw on in constructing their analytical and
theoretical framework and in contextualising their research results. This
results in various silos of ‘knowledge’ being produced. Studies examining box
office data in order to look for success factors, draw on other such studies,
studies looking at the impact of award ceremonies look at previous studies
about award ceremonies and so on. Consumer researchers may not give
great consideration to those looking at the business to business elements of
film marketing and film marketing scholars often ignore memoirs of film
professionals, film studies scholarship and sociological analyses of film
consumption. Similarly, many authors examining ‘film marketing’ from
other disciplines such as film studies or cultural studies do not engage with
the marketing literature on this subject. In this way, many isolated pockets of
film marketing knowledge co-exist without the benefit of cross-reference.
Although marketing theorists draw heavily upon sociology, psychology
and economics and more recently, cultural studies among other disciplines,
there is a substantial body of work in the marketing field which must be
considered in examining film marketing. Some previous authors have
written about film marketing without considering the link between
marketing theory and film marketing practices or fully understanding all
encompassing nature of the marketing function. Finally, there are many
books providing more practical insights into film marketing which are very
useful to film marketing practitioners, but discount considerations of the
wider macro-environmental issues which impact upon film marketing. For
those interested in the ‘why’ of film marketing as well as the ‘how’, this book
is an attempt to provide such a link and to illustrate the relevance of
marketing, specifically arts marketing theories to our understanding of the
marketing practices evident in the film industry. While film studies have
contributed to our understanding of film marketing, such as Justin Wyatt’s
(1994) book which introduces and discusses marketing in relation to the high
concept film, there is a need to engage more with marketing knowledge in
order to move forward our understanding of film marketing practices.
 What is Marketing? 3

WHAT IS MARKETING?
Marketing as a field of practice and an academic discipline is a contentious
area. This is partly due to the perception of marketing as finding ways in
which to sell things to people that they do not want or need. Looking to
Brown (2006), marketing has been blamed for many social ills such as
obesity, consumerism, psychological ills etc. and many critics of marketing
and critical marketers have examined the dark side of marketing. In addition
to this recognition of ‘the dark side’ of marketing (Hirschman, 1991), there
are various views on the historical development of the marketing function
or marketing practice, tensions between those aligning themselves to
the marketing management approach, critical marketing, post-modern
marketing, relationship marketing, experiential marketing, green marketing,
anti-marketing and so on. Rather than discuss these various approaches to
marketing, I acknowledge the various scholarly approaches to the study and
interpretation of marketing. This chapter and the remainder of the book will
introduce some of these theories and approaches that have particular rele-
vance for the study of film marketing. In writing this book, the starting point
was film marketing practice and observing these practices prompted me to
explore different marketing literatures as well as research from film studies,
audience reception studies, cultural studies and other areas of management.
Rather than start with generic marketing theories and assess their appro-
priateness for application to the film industry, I have interpreted film
marketing practices through an interpretive lens informed by these various
literatures. This book is an attempt to introduce and explore film marketing
practices with the aid of existing research as well as to set out future research
questions in the area of film marketing.
The starting point for this discussion of marketing theory is exchange
theory. Marketing as exchange was written about by Bogozzi (1975) and has
provided a useful framework for marketing academics. The marketing
management school mainly emanates from US business schools and has
viewed marketing as the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational goals (AMA definition
cited in Grönroos, 1994: 347). Following this the AMA (American Marketing
Association) launched a new definition of marketing at their 2004 Summer
Educator’s Conference ‘‘Marketing is an organizational function and a set of
processes for creating, communicating and delivering value to customers and
for managing customer relationships in ways that benefit the organization
and its stakeholders’’ (AMA, 2004). This change in definition reflects the
4 C H A P T ER 1: Introduction

movement of marketing academics and practitioners towards a more

relational approach to marketing. Such a relational approach has been
problematic in its application to film marketing due to the general lack of
such a direct relationship between filmmakers and the audience for their film
as this relationship is mediated by various intermediaries who have provided
access for filmmakers to the limited market. In 2007, the AMA once again
revisited their definition of marketing in recognition that marketing was not
merely a function, but rather a set of practices which can be undertaken
throughout an organisation. The current definition states that ‘‘Marketing is
the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large’’ (AMA, 2007). What this definition lacks is the
role of the consumer in this process. While this definition does include the
consumer, the ‘exchange’ is seen from the perspective of the marketer.
The marketing concept, which has dominated marketing since the 1960s
has been defined by Felton (1959: 55) as ‘‘a corporate state of mind that
insists on the integration and coordination of all the marketing functions
which, in turn, are melted with all other corporate functions, for the basic
purpose of producing maximum long range corporate profits’’. Drucker
(1954) emphasised the need to place customer satisfaction at the centre of
the marketing concept, with profit being achieved as a reward for attaining
customer satisfaction and marketing scholars such as Kotler have continued
the call for the customer to be at the centre of marketing activities. However,
when it comes to the marketing of the arts or within the cultural and creative
industries, such notions of putting the customer at the centre becomes
contested. As one of the basic elements of the ‘Customer as King’ philo-
sophical approach to marketing is to find out what the customer wants, there
is a clear tension between this approach and the process of product devel-
opment and marketing in the film industry, in common with other arts
sectors. In some ways, the film industry could be viewed as subscribing to the
much criticised product approach, where the producers are focused on
making the film, without considering the market for the film. Once the film
is completed, issues of marketing and consumption of the film are consid-
ered. But, this is a rather simplistic analysis of the film marketing process.
While consumers are rarely consulted prior to the development of a film
script, at various stages in a projects development, market sensing activities
are undertaken. Some of these practices are embedded within the practice of
film professionals to such an extent that they are not explicit, while others
are explicitly undertaken. This book will unpick these practices in order to
illustrate that filmmakers and marketers are also subject to some standard
marketing practices as well as highlighting the differences apparent when
 What is Marketing? 5

marketing artistic products such as film, rather than more mainstream

products or services.
Moving forward from considerations of ‘putting the customer first’ or
‘exchanging’ with the consumer, Vargo and Lusch’s (2004) paper which
proposed a ‘New Dominant Logic for Services’ and the many papers following
this have placed the discussion of the merging of what we formerly consid-
ered the goods/service divide. One of the central developments from this body
of work is the acceptance of the notion that value can only be created and
acknowledged by the consumer in the act of consumption. It is in the act of
consumption that value is recognised and embodied. Value can only be
evaluated in terms of the consumption experience. In this way, marketing
theorists have moved from central ideas of value in exchange to value in use.
This book centralises the notion of film having a value in use rather than an
abstract value, as film can play a number of roles, but it must be consumed in
order for that value to be articulated and made real. Moving on from
outmoded ideas of consumers as being ‘done to’, Vargo and Lusch (2006: 44)
reworked their notion of ‘co-production’ from their earlier (2004) paper.
Vargo and Lusch (2006) began to refer to the customer as ‘co-creator of value’.
This develops their earlier theory of ‘co-production’ which they acknowl-
edged was more appropriate for a production centred, rather than service
centred approach. My study of film marketing began by studying the activi-
ties of filmmakers and film marketers which fed into what I classified as film
marketing. This involved considerations of how these actors conceived of the
consumer and their perceptions of value. Much of the film marketing
activities which an organisation engages in presume that there is value in use
and market research aims to find out what that value is.
However, much of the rhetoric surrounding the marketing focus and the
subsequent marketing orientation which companies adopt as a result of this
orientation, focuses on the needs and wants of the customer. As noted above,
it is here that arts marketing researchers encounter problems. How do the
ideas of customer satisfaction fit compatibly with the creation of artistic
works? Are existing theories of marketing sufficiently broad to deal with
marketing in the creative industries? In answer to these questions,
researchers such as Fillis (2004), O’Reilly (2004) and Rentschler (1999,
2004) have tried to redefine marketing theory in order to provide useful
frameworks for the analysis of marketing the arts or creative industries.
A problem faced by arts marketing researchers when looking to literatures
such as those on market orientation is their lack of transferability to the arts
sector. When considering the application of the concept of market orientation
to the area of film marketing, we must assess the appropriateness of the
seminal articles by Narver and Slater (1990) and Kohli and Jaworsk (1990).
6 C H A P T ER 1: Introduction

Narver and Slater (1990) conceive of market orientation as culturally con-

structed and focused on meeting consumer needs and wants therefore
gaining competitive advantage. In contrast, Kohli and Jaworsk (1990) adop-
ted a behavioural approach which concentrated on the process of under-
standing the consumer’s wants and needs through engaging in extensive
information collection. The complication when trying to apply this to the
film marketing domain is that while it is possible to collect and analyse data
on past consumption of consumers, each film is an original, experiential
product which may appeal to a consumer against their expectations.
This makes it difficult for filmmakers and marketers to adopt a market
orientation.
However, it may not be necessary to turn away completely from the
marketing concept in order to examine film marketing. If customer satis-
faction is seen as the ultimate goal of market orientation (Kotler, 2002), this
can be seen as compatible with film marketing aims. It is the process by
which this satisfaction is achieved which needs to be reconceptualised
following developments in the marketing literature discussed above as well as
key theoretical debates in the consumer theory literature which are discussed
below. Consumer satisfaction cannot be achieved through asking consumers
what they want to watch films about and making them, but can be achieved
by making films which are of high technical and/or artistic value and posi-
tioning these films appropriately in order to appeal to the target market. If
a broad view is taken, we can state that companies or filmmaking collectives
can possess a market orientation in the film industry if their focus is upon
identifying and targeting an appropriate audience and satisfying the expec-
tations of this audience. As films are made to be watched (consumed), there
is a need to focus on the audience. This, however, does not imply a need to
‘give them what they want’, but rather, that filmmakers and marketers have
an understanding of the different film audiences that exist, and how to
engage them. This approach emphasises the need to segment the audience
for film, to select appropriate segments based on how receptive they will be to
the film in question, to target these segments through marketing commu-
nications, and to position the film appropriately by setting expectations in
relation to its genre, style and so on.

SUPPLY CHAIN MANAGEMENT AND MARKETING

What was clear from this early research was that film marketing begins right
from a films conception and continues through to the act of consumption.
Kerrigan and Yalkin (2009) found that consumers also extend their
 Supply Chain Management and Marketing 7

consumption experience by posting and reading reviews and going on to

watch related films. This need to develop a more holistic notion of film
marketing led me to the consideration of the supply chain literature. My early
doctoral research confirmed two things: non-Hollywood films suffered from
not having vertically integrated supply chains and the marketing process
should begin as early as possible in order for it to be effective.
Min (2000) proposed that the marketing concept is compatible with
theories of supply chain management as well as that of relationship marketing
by linking the marketing concept theoretically to the philosophical origins of
relationship marketing and to the underlying philosophy of supply chain
management. Min (2000) outlined a clear link between the marketing con-
cept’s focus on the customer, coordinated marketing and the profitability aim
and the philosophical foundation of relationship marketing. Focusing on
coordinated marketing and the customer is equally applicable to analysis of
the supply chain literature. This interdependence, which Min identifies
between the acceptance of the marketing concept and the practice of supply
chain management, has resonance for researching marketing within the film
industry. In order to discuss the concept of supply chain management in
relation to the film industry, it is first necessary to define these terms.
Mentzer et al. (2000a: 2) define a supply chain as ‘‘a set of three or more
companies directly linked by one or more of the upstream and downstream
flow of products, services, finances, and information from a source to
a customer’’. The three main activities in the film industry are production,
distribution and exhibition. For a film to reach the marketplace it must pass
through the hands of a production company, a distributor and an exhibitor.
There may be one or more production companies involved in a film
production, there are generally a number of distributors involved (each with
control of various distribution territories) and an even larger number of
exhibitors, whether they are individual cinemas or large exhibition compa-
nies. Latterly, technological developments have meant that this traditional
supply chain has been circumvented by a number of enterprising filmmakers.
Just as the YBAs (Young British Artists) circumvented the traditional visual
art route to market, these filmmakers are finding an audience outside the
formal market structures through developments such as crowd sourcing.
The term supply chain management (SCM) is frequently used but often
not sufficiently defined. In acknowledging this confusion in relation to
accepted definitions of supply chain management, Mentzer et al. (2000a)
attempt to synthesise various existing definitions in order to come up with
a definitive definition. Although this is a necessary process, this will only
prove profitable if those who have been using the term accept their definition.
Wisner and Tan (2000: 1) declare that SCM includes ‘‘all value adding
8 C H A P T ER 1: Introduction

activities from the extraction of raw material through the transformation

processes and delivery to the end user’’. This definition is wide enough to be
applicable to most industries but, as a consequence of this universality, too
general to be useful in the study of a particular relationship or circumstance.
Through the use of the term ‘raw materials’ it is evident that Wisner and Tan
see SCM as a concern of the manufacturing industries. However, ‘raw
materials’ in the information age can be extended to include forms of intel-
lectual property and therefore more easily applied to the film industry and
other creative industries.
The definition proposed by Mentzer et al. (2000a: 2) defines supply chain
management as ‘‘the systemic, strategic coordination of the traditional
business functions within a particular company and across businesses within
the supply chain, for the purposes of improving the long-term performance of
the individual companies and the supply chain as a whole’’. This definition is
helpful in terms of the study of the film industry, as it recognises the need to
coordinate activities across functions as well as across organisations. What is
also welcome in this definition is the recognition for this process of coordi-
nation to occur in order to ensure sustainability. In referring back to the
discussion of film industry policy developments over the past number of
years, this need for sustainability has been recognised by film policy makers
at national and supra-national level. Therefore, a discussion of the film
industry supply chain, in line with Mentzer et al. (2000a) definition is
entirely appropriate.
Mentzer et al. (2000c) also stress that the existence of a supply chain does
not infer that supply chain management is being undertaken. In fact, in the
case of the film industry, what is problematic is the absence of such
management or a coordination that will lead to long-term sustainability. In
the case of the vertically integrated Hollywood majors, it can be argued that
such SCM does exist, and this explains why they have dominated the film
industry since their formation in the 1920s.
The various stages in the film industry supply chain, as well as the
activities involved in each of these stages, are illustrated in Figure 1.1. In this
figure, the processes are presented as linear, although in fact, some of these
stages overlap depending on the nature of the film project, the type of finance
and, importantly, the nature (if any) of the supply chain management.
In order to understand the impact of an integrated supply chain on the
process of marketing a film, it is important to develop ideas drawn from the
supply chain literature such as waste minimisation (in the case of the film
industry, this waste is creativity). Building on this, Mentzer et al. (2000b)
identify the importance of looking at supply chain relationships, both in the
traditional manner of the consideration of operational issues in addition to
 Defining Film Marketing 9

Development Pre Production Production Post-Production Distribution & Exhibition

Rights cast and crew Above the line, Editing, Advertising Theatrical
acquisition, selection, below the line Soundtrack Sales, (cinemas)
script greenlighting Distribution, DVD/VCR/
development, financing, Trailers, Blu-ray/
financing Publicity TV (free and pay
Pay per view
Free TV

FIGURE 1.1 The film industry supply chain (adapted from Kerrigan, 2005).

considering relationship building as an important function. They focused

upon retail supply chains, but their thesis is equally applicable to the film
industry. European film production and distribution companies in general
conform to the model of ‘partnering relationships’ where relationships are
the result of extensive operational links developed over time.
The above sections emphasise the need for close long-term inter-firm
relationships and inter-firm cooperation. These are the two resultant
components of supply chain management according to Min (2000: 93). As
the film industry is characterised as high risk (Biskind, 1998; Eberts and
Illott, 1990; Finney, 1998; Evans, 2003; Phillips, 1991), such close inter-firm
relationships and inter-firm cooperation can provide a level of reduced risk.
Sheth and Parvatiyar (1995) illustrated how perceived risk is linked to
uncertainty. Such uncertainty of outcome is inherent in the film industry and
therefore it is natural to seek assurance through established relationships.
Such inter-firm relationships are the norm in the European film industry and
the nature of the relationships which have formed out of this fragmented
structure is documented by Eberts and Illott (1990), Finney (1998) and Kuhn
(2003). In these accounts, much emphasis is placed on risk and the need for
close relationships to form, where creative and financial risks could be taken
due to the high levels of trust in existence in the inter-firm or inter-personal
relationships.

DEFINING FILM MARKETING

It is necessary at this stage to define what is meant by film marketing and to
show how this book will go beyond some others in illustrating that film
marketing is more than marketing communications in the film industry.
Film marketing, in line with the marketing management processes in other
industries, begins at the new product development stage and continues
10 C H A P T ER 1: Introduction

throughout the formation of the project ideas, through production and into
distribution and exhibition. At key stages in the product life cycle, various
actors are involved in numerous marketing activities, from marketing an idea
or a script to a production company to the final marketing of the film in
cinemas, on DVD and through other exhibition outlets such as VOD (video
on demand), cable television and terrestrial television. Durie et al. (2000: 5)
define film marketing as ‘‘any activity that assists a film in reaching its target
audience at any time throughout its life.’’ In addition to the managerial
functions associated with film marketing, and following Vargo and Lusch
(2004, 2006) it is necessary to continue the film marketing journey into the
realm of film consumption and out the other side. If film consumption can be
seen as a journey, it may be difficult to identify the beginning and the end of
such a journey. As Kerrigan and Yalkin (2009) found, film consumption does
not end as the credits come up on a film, as consumers may wish to extend
their consumption through visiting online review sites, discussing the film
with friends or progressing with their film consumption to consumer related
films. Consumption of one film may lead a consumer to seek out other films
by a particular director or writer, to find out more about the composer of the
soundtrack or artists featured on the soundtrack. If a film is a remake, they
may be tempted to seek out the original. As discussed by Wohlfeil and
Whelan (2008), film consumers may wish to watch other films featuring
a favourite actor.
In this way, film consumption may be viewed as a more cyclical activity
and film consuming may be inspired by other cultural products such as
books, music, television, newspaper articles and so on. This necessitates any
study of film marketing to consider both the producer and consumer
perspectives and to look at where these intersect. How do consumers create
value through their consumption of film and when does this value creation
begin and end? I propose that value creation begins at the point where
consumers become aware of a film, try to make sense of the messages they
are receiving from the filmmakers, film marketers and mediated by the press
and other film consumers. The process ends somewhere after consumption
when the consumer makes sense of their experience and draws on this
experience to consume the film again, to recommend to others or to move on
to a related film. It would be misleading to portray this process of value
creation as simple and tightly bounded. For example, UK film critic Mark
Kermode when reviewing The Boat that Rocked (2009), referred to a previous
film by the writer/director Richard Curtis, Love Actually (2003). Kermode
had originally hated the film but when he watched it again, he began to like it.
Despite having intensely disliked the film on the first viewing, Kermode was
persuaded to revisit the film by his wife and after doing so he revised his
 Outline of the Book 11

opinion, therefore, the process of value creation cannot be seen as being

a contract between the film maker/marketer and the consumer, but takes
place in what du Gay et al. (2000) call a circuit of cultural consumption.
Academic film marketing literature has been developing in line with the
increasing interest in the creative industries and acknowledgement of the
economic value of these industries in developed market economies.
Following this interest, there is now a significant body of research published
in marketing and management journals which considers elements of film
marketing. To date, books on film marketing written from a marketing
perspective are absent and therefore as noted above, those wishing to engage
with film marketing have had to trawl through numerous journals in order to
familiarise themselves with the current literature. Although this book is not
exhaustive in terms of the literature which is relevant to film marketing, by
incorporating film studies, cultural studies, media reception studies, socio-
logical and psychological studies alongside core film marketing literature, it
attempts to provide a good framework within which to consider the key
elements of film marketing. As the approach taken in this book centralises
studies of the macro-, meso- and micro-environment and how activities at
these three levels impact on and influence film marketing activities, it starts
with a broad overview of the film industry before moving on to more specific
topics.

OUTLINE OF THE BOOK

The book is structured as follows: the early section of the book examines the
historical development of the film industry and focuses primarily on the
development of the US film industry as this is the dominant force in the film
world. Chapter 2 considers the origins and development of the film industry.
This chapter traces the structural development of the film industry, with
special emphasis on the integrated Hollywood model. This integrated model
is seen as offering the greatest possibility of success for individual films due to
the automatic access which filmmakers have to distribution and exhibition
once they are aligned with one of the major Hollywood film companies. The
current trend in the global entertainment industries is integration. A range of
literature is presented which shows the importance of policy and diplomacy
in supporting the growth of the US film industry. The chapter traces some
key world events which have impacted on the development of national film
industries in Europe and moves forward to considerations of the impact of
key supra-national policies on the global film industry. In addition to
rehearsing established analyses of the dominant position of the US major
12 C H A P T ER 1: Introduction

studios, this chapter also introduces the contrasting examples of the

Nigerian, Indian and South Korean film industries in order to illustrate the
impact of the wider macro-environment on the development of national film
industries. Some key distinctions between the film industry and film
marketing practices in Hollywood are contrasted with those in Europe,
Nigeria, India and South Korea. The chapter ends by emphasising the power
structures which exist within the global film industry.
Chapter 3 examines the development of early film marketing practices.
The chapter begins by introducing the key film marketing terms: market-
ability and playability. This is followed by a brief discussion of the historical
development of market research within the film industry. Linking film
marketing and development to conventional theories of new product devel-
opment, the chapter goes on to consider the importance of the development
function within film marketing. In doing so, differences in terms of the
approaches to development between Hollywood and non-Hollywood film-
makers are discussed. The importance of research in the film marketing
process is also considered in Chapter 3 and the various types of research are
discussed. This is followed by Chapter 4 which examines the structure of the
international film industry. The particular focus of this chapter is on the role
of policy in shaping the film market as well as the impact this has on film
consumption. In order to understand the current film marketing environ-
ment, it is important to examine recent developments in this environment.
The supranational environment is introduced and followed by an exploration
of European level film policy. This is followed by a relatively detailed analysis
of the development of film policy in the UK and an overview of current UK
film policy. The impact of cultural and industrial policy on the development
and support of the film industries in South Korea and Denmark are then
discussed and finally, the case of Nigeria is discussed in order to contrast an
industry which has developed in an entirely commercially driven manner
with industries where a deliberate policy was established with the intent of
supporting and developing filmmakers in these countries.
Following this first section of the book which considers various aspects
of the wider macro-environment and how they impact on film marketing
and consumption practices, the second part of the book moves to look at
specific marketing practices which occur within the film industry. Linking
film marketing and the development of a film marketing process to main-
stream marketing theory, this chapter begins by proposing a ‘film marketing
mix’ which consists of the core elements which must be considered by
filmmakers and definitely by film marketers. These elements can act as
signals to the film consumer which can help them to evaluate the film prior
to consumption. The first of these elements of the film marketing mix is the
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