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1. Marketing & Marketing Reasearch

• Demographics: There may be illustrated many figures about the demographics of the USA and the related regions. The most important figures that affects the business of the circus are listed below:

• Yearly income level: The income level bears the wealth of the people. The potential customers are above a certain level of an income level. The average earnings of a family is estimated as $30,000 , which implies that the USA, with its wealthy people can stand a big circus. Also,the region where the business is condensed is richer than the average. Additionally, the GNP levels and ranking with respect to the state is a tool for price determination.

• Distribution of income level: Probably the poorest and the richest portion of the population will not be attracted by the circus. According to the marketing book of Berkowitz, most of the population is condensed in the other section of the income level. This means that the market will not be affected by the irregular distribution of the income level.

• Urbanization: Mostly the urban people are interested in the circusses and the circusses are constructed at the citites. 75% of the US people live in the cities. Hence city to city routing of the tournees would be optimal for the company.

• Education level: The educated people are more attracted by the quality service of entertainment. They see worth of paying an amount of money for the service. Also education bring an increase in the dynamic population of the women in the society. Therefore more people can come to the circus for the country of USA, where education level is high.Also education brings the use of readings and internet, which are good ways of the advertisements.

• Marriage: The fraction of the marriage implies more children and better income level (since the married pairs are older, hence richer than others). This is an advantage to create a demand for the children and the family.

• Average age: The average age is also important. The audiences of the circus are mostly composed of young people and middle-aged people. The average age of US citizens is 31, which is higher from the optimal, but not very bad for the pool of the potential customers. Also the data about the distribution with respect to ages are important to make segmentation among age groups.

• Desire for quality: The quality service can only be sold to the people who desire quality. The American people fits to the needs of the market for the quality service.

• Competitors: There are three big competitors in the region, one at Wisconsin, one at Canada and one at Florida .The one at Florida, called Ringling Brothers (www.ringling.com), is the most powerful circus in the southeastern region with its big organization and attractive tournees all over the region. The data of this circus are available to determine the pricing of the industry, the intercepting schedules of the tournees and many other use. The competition may be examined in three different aspects for the bearing of our organization:

• Substitutes: additional to the tournees of the competitors, the concert, sport activities and other social activities may be a substitute for our service.

• Powers of buyers: are important for obtaining enough demand and setting optimal prices.

• Market entry barriers: may be viewed from the customers as cost of switcing to the new service, changes in the habits and tastes. Really there is no cost of switcing to our new circus. We are proposed to give better or equal service with less price. The tastes and habbits of the customers may be a problem in the initiation of the business plan.

• Regulatory forces: State of the country permits any business to improve the liberal economy. This brings free competition. The regulations about the organization, price and promotions should be obeyed.

• Social structure:can be viewed from the social class and culture perspectives.

• Social class: Most of the population (according to Evans/Berman in marketing book) is condensed between the upper lower and the upper middle social class, which is desired for the business situation.

• Culture: The more culture, the more quality and more demand is applicable for the USA.

• Psychology: The concepts of the psychology of the people of the concern should be clearly identified by face to face interaction and by the secondary sources to gain data for the marketing and product strategies.

• Consumerization: The social structure of the USA permits better customer relations through consumerization.

Many happy returns are prospected as long as a well established, long lasting and cost effective market research is made. There will be three simulateneous marketing efforts to be made in order to achieve this goal.

First of all the already exisiting markets should be concentrated, which is basically achieved by the company marketing team working in the headquarter location but also making trips to the sites. This team should be making regular customer surveys in order generate demand being affected by the existing shows quality and uniqueness, festival programs and dates (competitors progressive tournee routings and dates) and the shows and prices of the competitors. These surveys include the currently operated 46 cities for the time being, however this is also the basic methodology to determine the number of shows to perform, demand structure and the performance dates and times in the progressive cities in which the performances will be made in the future. Apart from the regular marketing people salaries basic marketing costs is assumed to be as follows with regard to www.shanepaul.com, and assuming annual sales of around $7,000,000:

• Marketing materials: $ 25,000
• Nespapers/magazines: $ 20,000
• Trade shows: $ 30,000
• Marketing staff expenses: $ 150,000,
• Yellow pages: $ 1000
• In sum: $226,000

A final strategy for the marketing is to get use of internet and publish an offical web page of the circus making ticket sales, presenting tournee routings, customer surveys, stage performances etc. For a detailed analysis of marketing cost reductions due to internet refer to Nathaniel Boronstein (nsb@nsb.fv.com), Mark Hornung (mhornung@pa.hodes.com), Jerry Neece (jerry.neece@corp.sun.com), and Josh Reynolds (sensei@brain.com). The following basic areas stand for potential savings:

- Expense reduction

- Increased productivity