Principles of marketing and market research applications ...
Transcript of Principles of marketing and market research applications ...
This document is downloaded from DR‑NTU (https://dr.ntu.edu.sg)Nanyang Technological University, Singapore.
Principles of marketing and market researchapplications to newspaper management
Ghosh, Sanjoy.
1993
Ghosh, S. (1993). Principles of marketing and market research applications to newspapermanagement. In AMIC Workshop on Newspaper Circulation and Advertising Development:Dhaka, Sep 19‑22, 1993. Singapore: Asian Media Information and Communication Centre.
https://hdl.handle.net/10356/100322
Downloaded on 22 Jan 2022 04:10:53 SGT
Principles of Marketing/Market Research Applications To Newspaper Management
I By
Sanjoy Ghosh
Paper No.4
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
WORKSHOP ON NEWSPAPER CIRCULATION AND ADVERTISING DEVELOPMENT
Principles of Marketing/Market Research Applications to Newspaper Management
Sanjoy Ghosh
Organised by
Asian Mass Communication Research & Information Centre,Singapore
DHAKA • Bangladesh • September 1 9 - 2 3 , 1993
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
PRINCIPLES OF MARKETING/MARKET RESEARCH APPLICATIONS TO NEWSPAPER MANAGEMENT
MARKETING - AN OVERVIEW
We seem to approach every landmark y e a r , be i t the s tar t of a
decade or a century with b r e a t h l e s s an t ic ipa t ion , expecting an
apoca lypse of the s ta ture of the Second coming of Chr i s t . As we
all know, t h e r e was no such ca tac lysmic-event on January 1,1970,
1980 o r 1990. Nor is the re l i ke ly to be one on January 1,7.000.
21ST CENTURY BEGAN 15 YEARS AGO
Societal changes does not t ake place as p e r calender d a t e s . As
Pe te r Drucker r igh t ly suggested, the 21st century began 15 years
ago . The future i s a l ready h e r e . What wil l happen in the 2000,
t h e r e f o r e , will not be a s h a r p depa r tu r e from the prognostications
made for the 90s . In fac t , my conviction is that to the informed
profess iona l , eighty per cent of what i s to happen during th i s
decade is writ ing on the w a l l . The remaining twenty per cent is
the t e r r i t o r y of Nostradamus.
BULLOCK CARTS TO ROCKETS
In the Indian context , the scenario is even more def in i t ive . A
rep lay of the Western p rocess of change - only each phenomenon
with p e r h a p s a shor ter time span . The leapfrogging from Bullock
c a r t s , to J e t s . The boom in information technology is both a
symptom and a major contr ibutor to t h i s pehnomenon of
internat ional isat ion of the p r i c i p l e s of b u s i n e s s .
DEPENDENT ON THE SOCIETY
This i s the backdrop against which marketing in the 90s is to be
v iewed . As William Nickels had s a i d , "Marketing as a process
changes depending upon the society in which i t o p e r a t e s . The
p o l i t i c a l , economic, soc ia l , technological and physical
c h a r a c t e r i s t i c s of a society determine what form marketing wil l take" .
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
OTHER INDUSTRIES CONTRIBUTE
The newspape r i ndus t ry in Ind ia , which was p a r t i c u l a r l y slow
paced i s becoming increas ingly compet i t ive . Besides global
bus iness t r e n d s and d i r e c t i o n s of media in the West, we have a
lo t to learn from o the r i n d u s t r i e s , even in our own environment .
Why d i d iced tea get a cold recept ion and why d id t he market
come a l i v e to instant coffee ? Washing machines and Dishwashers
a r e both impor ted c o n c e p t s . While washing machines were an
immediate unqualif ied success in India , t h e r e a re factors l i ke
consumer economics and low placement in h i e r a r c h y of needs tha t
s t i l l i n h i b i t t h e launch of d i s w a s h e r s in Ind ia .
INDIAN ADVERTISING SCENE
Defying world wide t r e n d s where mass .media adve r t i s ing is the
f i r s t expend i tu r e head to suffer in an economic slow down, the
Indian a d v e r t i s i n g indus t ry has caught e x p e r t s by s u r p r i s e by
record ing 25% g r o w t h . The adve r t i s ing revenue in the p r in t medium
had been to t h e tune of Rs.12,500 millions in 1992 as compared to
Rs.10,910 mil l ions in 1990 t h e r e b y recording a growth of 13%. The
s h a r e of Daily p r e s s h a s grown from Rs.8250 mil l ions in 1991 to
Rs.9370 mi l l ions in 1992 wi th a growth of 12%.
RURAL MARKET
The Indian ru ra l market i s emerging as the most potent ia l a r e a .
More and more marke te r s a r e target t ing to t h i s untapped* r e s o u r c e .
F u r t h e r t h e r e a re people of t he middle c lass who a r e slogging i t
out to a t ta in a b e t t e r l i fe s t y l e and the now economic po l i c ies has
opened new windows. With t he se emerging t r e n d s , the regional
p r e s s may gain a new s t a t u s .
If consumer or ienta t ion i s t h e k e y , a l l m a r k e t e e r s , be they in
consumer softs o r in n e w s p a p e r s , must t ake g rea te r cognisance of
t r e n d s , p r eva l en t and imminent , to achieve marketing success in t he
90s .
2
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
WHAT THEN ARE THESE TRENDS
In t h e i r book "Megatrends" John Naisbit t and Pa t r i c i a Aburdene
ident i f ied 10 t r e n d s shaping the e ight ies which a re s t i l l pa r t of
the p i c t u r e as we are in 90s . Two t rends a re pa r t i cu l a r ly
re levant to t h i s presentat ion :
The evolut ion of an indus t r i a l society into an information society
in, e i g h t i e s , i . e . a shif t of advantage based on indus t ry and
in f ras t ruc tu re to information (as a source of p o w e r ) . In the
ninet ies i t w i l l be fur ther accentuated by knowledge and not mere
information t h a t wi l l const i tute the cutting edge .
The t r ans i t i on from the concept of national economies to a world
economy. The col lapse of communism, the reunification of Germany
and the imminent formation of European Common Market have
brought toge the r t he antagonists of world w a r s . Coups and counjter
coups , i n su rgenc ie s , and wars a re no longer local or b i l a t e ra l
i s s u e s . They affect world economics as a whole as ref lected in
stock exchanges accross the g lobe .
WHAT DOES ALL THIS MEAN WHEN TRANSLATED INTO MARKETING TERMS
Intensification of competition
Widening consumer choice
Greater emphas i s on q u a l i t y / p r i c e equations
Innovations and experiements
Greater segmentation by p roduc t , p r i c e , qual i ty and market
Consumer f r iendly finance schemes
Brand equ i ty of exis t ing b rands and fewer new brands
Finer tuned posit ioning
Higher than e v e r entry b a r r i e r s
Discount wars
More compara t ive adver t i s ing
Success depending less on company reputation and muscle
Over communicated society resul t ing in increased c lu t te r
Rising media cos t s
3
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
BATTLE ROYALE
It i s in t h i s m a r k e t i n g s i t u a t i o n t h a t t h e m e d i a h a s to p l a y a r o l e
- TV, P r e s s , Outdoor e t c . As t h e w e s t e r n e x p e r i e n c e sugges t s in
c o n s u m e r a d v e r t i s i n g t h e b a t t l e r o y a l e w i l l b e be tween P r e s s
( i n c l u d i n g magaz ines ) and TV ( inc lud ing c a b l e , v i d e o , o u t s i d e
c h a n n e l s ) . I w i l l l a r g e l y r e s t r i c t myse l f t o n e w s p a p e r s . Although
i t m i g h t not be p o s s i b l e t o d i v o r c e onese l f from magazines
a l t o g e t h e r .
WHAT DO THE NEWSPAPER HAVE TO OFFER AS A MEDIUM
In one w o r d , p l e n t y . O n l y , t h e n e w s p a p e r s must l e a r n how to
r e l a t e t o a u d i e n c e s in t h e v i s u a l l y o r i e n t e d m a r k e t p l a c e of a new
g e n e r a t i o n . E d i t o r s and manage r s of n e w s p a p e s h a v e to change
b e c a u s e r e a d e r s and a d v e r t i s e r s a r e c h a n g i n g .
The n i n e t i e s a r e t h e ' d e c a d e of t h e c o u s t o m e r ' and success fu l
n e w s p a p e r s w i l l h a v e to a d o p t to t h e d e m a n d s of a ' t i m e p r e s s e d
r e a d e r s h i p ' on one hand and a ' S e r v i c e - s e n s i t i v e ' a d v e r t i s e r on
t h e o t h e r . If t h i s a p p a r e n t l y s i m p l e formula i s a p p l i e d to t h e
p r o f e s s i o n , n e w s p a p e r s h a v e noth ing to w o r r y abou t from TV or
any o t h e r m e d i a . P o t e n t i a l l y , i t h a s e v e r y t h i n g t h a t a d v e r t i s e r s
w a n t . Only s p a c e m a r k e t e r s h a v e t o be more t h a n v e n d o r s of b l a n k
s p a c e . T h e y h a v e t o be m a r k e t i n g p a r t n e r s of a d v e r t i s e r s .
In a r e c e n t conference in Ca l i fo rn ia Mr . Ray G a u l k e , Vice
P r e s i d e n t of t h e US N e w s p a p e r A d v e r t i s i n g B u r e a u , r e c a l l e d t h e so
c a l l e d p l a n s of T u r n e r Communicat ions to l aunch b r o a d c a s t , to r e a c h
p e o p l e ' w h e r e t h e y go ' : TV p r o g r a m m e s a imed a t p a s s e n g e r s
w a i t i n g in a i r p o r t s and s h o p p e r s in d e p a r t m e n t s t o r e s . Dont
n e w s p a p e r s d o t h a t ? Geaulke a s k e d . And w i t h no z a p p e r s , to t h e
b e s t of my k n o w l e d g e , h e a d d e d . Geau lke e x p l a i n e d t h a t
n e w s p a p e r s a r e a l r e a d y t h e r e w h e r e t h e TV moghuls want to g o .
To t h w a r t t h i s t r e n d , G e a u l k e , sugges t ed t h a t p u b l i s h e r s
h e n c e f o r t h r e f e r to t h e n e w s p a p e r a s a new medium :
4
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
Por tab le out of home, zapf ree at home,
wi th the ab i l i ty to sooth t h e h a r r i e d t r a v e l l e r ,
reduce s t r e s s , enter ta in , inform , a c t i v a t e ,
reach large numbers of people effeciently
and provide t i d b i t s .
As a purveyor of the p r e s s and since t h i s workshop is
p a r t i c u l a r l y focussed on the Marketing p r inc ip le s and t h e i r
appl ica t ion to the newspaper , le t us define newspaper in modern
marketing term ;
It i s a busket of s e r v i c e s ins tead of
a product containing news & views
If we would l ike to have a more fine tuned te rm:
A newspaper may be desc r ibed as a very soft , highly branded
product manufactured for a p ro f i t - It acts as a mirror to the
community and p lays c r i t i c of these images, through edit and ads
(ads may also be descr ibed as paid ed i t s )
Now le t us see how these above two terms match with the
p r inc ip le of marketing :
"Marketing encompasses an en t i r e range of ac t iv i t i e s designed to
p l an , p r i c e , promote and d i s t r i b u t e wont sat isfying products and
se rv i ce s to present and potent ia l customers"
Please allow me to cite a few examples from the Indian context to
e lucidate t h i s p r i nc ip l e .
Case : CEASE FIRE - it i s a handy , smal l , po r t ab l e , good
looking fire ex t ingu i she r . Now we had a mind set about
f i re ext inguishers a re by and large h e a v y , cumbersome to
o p e r a t e , ugly looking and can not be operated by any
o rd inary "person. So the la tent need for t h i s product was
a lways the re but no body thought about ut i l is ing t h i s
slot before th i s engineer turned ent repreneur quit the
business of producing Arr i s tocra t luggage and marketed
t h i s unique produc t .
5
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
Case : Hind i f i lms a r e be ing made in Bombay for a long t ime
and t h e y n e v e r h a d to b o t h e r abou t s e l l i n g . But
p r o l i f e r a t i o n in n u m b e r s and s t i f f c o m p i t i t i o n from o t h e r
e l e c t r o n i c m e d i a , h a v e f o r c e d Hindi f i l m s to be m a r k e t e d
a c c o r d i n g to t h e d e s i r e and t r e n d s of t h e v i e w e r s .
Case : Emergence of p u b l i c a t i o n s l i k e Economic T i m e s , G l a d r a g s ,
P a r e n t i n g , F a n t a s y - a r e a l l wont s a t i s f y i n g p r o d u c t s for
t h e p r e s e n t Indian r e a d e r s w h i c h can not b e d r e a m t b e f o r e .
So from t h e s e c a s e s we ge t a r e f l e c t i o n and to de f ine t h i s
r e f l e c t i o n , we b o r r o w from t h e m a r k e t i n g g u r u , P h i l i p K o t l e r :
"What we can make we s e l l
What we can s e l l we m a k e "
MARKETING MIX
M a r k e t i n g mix i s u n d e r s t a n d i n g t h e v a r i a b l e s of t h e p l a c e w h e r e t h e
game w i l l be p l a y e d . T h e r e a r e two a s p e c t s of m a r k e t i n g mix one
i s u n c o n t r o l l a b l e v a r i a b l e s and t h e o t h e r i s c o n t r o l l a b l e .
ENVIRONMENT
( U n c o n t r o l l a b l e v a r i a b l e s )
S o c i e t y , Cus tom, P e o p l e , Language , E t h n i c B r e a k u p j C l i m a t e ,
C o m p e t i t i o n , G o v t . S t a tu t e s e t c .
COMPANY
(Mix of c o n t r o l l a b l e v a r i a b l e s )
P r o d u c t , P r i c i n g , B r a n d i n g , C h a n n e l s of d i s t r i b u t i o n , p e r s o n a l
s e l l i n g , A d v e r t i s e m e n t , P r o m o t i o n , P a c k a g i n g , D i s p l a y , S e r v i c i n g ,
P h y s i c a l h a n d l i n g , Fact F ind ing a n a l y s i s e t c .
So t h e end p r o d u c t must ac t w i t h i n t h e Env i ronment r e f l e c t i n g t h e
v a r i o u s U n c o n t r o l l a b l e v a r i a b l e s w i t h t h e a i d of mix of c o n t r o l l a b l e
v a r i a b l e s .
6
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
A mainline da i ly becomes number one only when i t s t a r t s
r e p r e s e n t i n g the voice of t he people /vo ice of t he s t a te Like:
The Statesman from Eastern India
The Hindu from Southern India
The Times of India from Western India
Dainik Jagran from Central India
The command which any d a i l y has over i t s r e fe ra l environment can
be la rge ly gauged through quantum of c lass i f ied adver t i sement
which i t a t t r a c t s .
CLASSIC 4 P s
PRODUCT
PROMOTION
PRICING
PLACE
Now l e t us e x a m i n e t h e c l a s s i c 4 Ps of m a r k e t i n g Mix w h i c h a r e
r e l e v a n t t o n e w s p a p e r i n d u s t r y .
PRODUCT
"A b u n d l e of p h y s i c a l , s e r v i c e and s y m b o l i c p a r t i c u l a r s e x p e c t e d
t o y i e l d s a t i s f a c t i o n s o r b e n e f i t s t o t h e b u y e r " .
P r o d u c t p o l i c y in i t s b r o a d e s t s e n s e would c o m p r e h e n d a l l
d e c i s i o n mak ing t h a t a f f e c t s w h a t c u s t o m e r s s e e a s t h e f i r m s
o f f e r .
PRODUCT LIFE CYCLE
Jus t l i k e human l ife a l l p roducts have a life cycle which can be
d i s t i ngu i shed in five s t a g e s .
7
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
PRODUCT L IFE CYCLE
o o
The p roduc t l i f e cycle concept i s advanced as a useful idea l i sa t ion
r a t h e r than a r i g id desc r ip t i on of a l l p roduc t l i fe h i s t o r i e s . It
should be unders tood tha t t h e r e i s nothing f ixed about t h e length
of t h e cyc le o r of i t s var ious s t a g e s . The length of the product
l i fe c y c l e i s governed by the r a t e of t echn ica l change , the r a t e
of marke t accep tance and t h e case of compet i t ive e n t r y .
Ex : Ananda Bazar Pa t r i ka Vis a Vis
Aajkaal - two Bengali d a i l e s
from Calcutta
P r o d u c t s h a v e been known to begin a new cyc le o r to r e v e r t to an
e a r l i e r s t a g e a s a r e su l t of t he d i s cove ry of new uses t h e
a p p e a r a n c e of new use r s or t h e invention of new f e a t u r e s .
E x : The Times of India - 155 yea r s
P roduc t s r e q u i r e a different marketing programme in each s t a g e .
Management must be p r e p a r e d to shif t the r e l a t i v e leve ls ' and
e m p h a s i s g iven to p r i c e , a d v e r t i s i n g , p roduc t improvement and
o t h e r marke t ing elements during di f ferent s t ages in t h e produc t
l i fe c y c l e -
COMPANY OBJECTIVES
Managements o b j e c t i v e s a lso have a strong influence on produc t and
marke t ing s t r a t e g y . Some might opt for P r o f i t s , ano the r may
choose S t a b i l i t y and t h i r d may adopt Growth.
8
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
Four bas i c product - market s t r a t eg ies :
1. Market Penetration - t h e company seeks increased sales for
i t s p resen t products in i t s present markets through more
aggress ive promotion and d i s t r i b u t i o n .
2 . Market Development - t he company seeks increased sales by
taking i t s present p roduc ts into new m a r k e t s .
3 . Product Development - t he company seeks increased sa les by
developing improved products for i t s present m a r k e t s .
4 . Diversif icat ion - t he company seeks increased sa les by
developing new p roduc t s for new m a r k e t s .
Ex : The Times of India Group
OBJECTIVES OF TOI GROUP
Maximise revenue for Group publ icat ions the reby leaving
minimal quant i ty for competition
Support the brands which are not market l eade r s
P rov ides inbui l t s t r a t e g i e s to sur round/a t tack competi tors
F lo t i l la concept i . e . a r r a y of products guarding main
b a t t l e s h i p i . e . TOI - Bombay
— Helps in new launches
Rs.30 million spent by t he group on the 150 yea r s celebrat ion
p rov ided Air cover to :
Enhance perce ived value of b rands by es tab l i sh ing aura of
i nv inc ib i l i t y around them.
Establ ish BCCL as pr ime marketing organisation
Demoralise/confuse compet i tors
9
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
— Divert attention from awkward i ssues l ike h ike in ad tariff
— Image building espec ia l ly for recruitment
— Diversification - Times Guaranty Fund.
PRODUCT STRATEGY IS THE FUSION OF THE FOLLOWING KEY SUBSTRATEGIES
Tech - Led
Which a r i s e s due to s p a r e production capaci ty
Equity - Led
Which resu l t in future gains Ex: The Telegraph catch them
young
Synergy - Led
Which use talents ava i l ab le within the organisat ion.
Ex : Femina Gujarati
Ad revenue led
Which ex i s t because of the ad revenue they bring
Ex : Economic Times
Circulat ion - Led
Which e x i s t for strong business r ea sons . To pre -empt
competi tors from grabbing a niche (Entry b a r r i e r ) v
Ex : The Independent
P res t ige - Led ;
Which add snob va lue / sex appeal to the organisat ion.
Ex : Femina/Film Fare
PRODUCT MODIFICATION
P r o d u c t s , not a l l of them, r e q u i r e pe r iod ic modification if they are
10
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
to remain compe t i t ive . Other p roduc t s pass on to the stage where
fu r the r product modification could not h e l p , they are candidates
for e l iminat ion .
Improvement may be t h r e e Direct ional - Qual i ty , Fea ture , S ty l e .
Since product modifications involve r i s k s , the company should
cons ider maneuvers tha t h e l p reduce r i s k . One r i s k reducing
pol icy i s to modify the product g radua l ly r a t h e r than a b r u p t l y .
Another r i s k reduction pol icy i s to continue the old product
alongside the new. A t h i r d r i s k reduct ion policy is to make
adequate investments in marketing r e s e a r c h in o rde r to improve
es t imates of the sa l e s impact of t he contemplated product
modif icat ion.
Ex : The Statesman - English Daily
There a re too may compet i tors with r e s e a r c h , marketing technique ,
vas t budgets standing r eady to a l lu re cus tomers . Customers
themselves are not a lways loyal or invulnerable to compi t i tors '
ent icements .
The process s t a r t s from idea ga the r ing , screening, business
ana lys i s , product deve lopment , t es t marketing and
commercial isat ion.
Ex : The Telegraph - English d a i l y from Calcut ta , eliminated
Amrita Bazar Pa t r ika and made heavy in roads , into The
Statesman e m p i r e .
They scored on the product development aspec ts l ike Print
p roduc t ion , Product packaging, Test Marketing, Consumer
preference test ing e t c . They also successfully employed the
Consumer Adoption process by Awareness - Interest
Evaluation - Tr ia l - Adoption, one of the c lass ic models of
product being posit ioned .
PROMOTION
The purpose of adver t i s ing is to improve the b u y e r s ' d isposi t ion
toward the company 's p r o d u c t s .
11
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
Promotion along with product deve lopment , p r ic ing and
d i s t r i b u t i o n , i s a major marketing t a s k . Promotion is the
c o m p a n y ' s a t tempt to st imulate sa les ' through d i r ec t i ng pe r suas ive
communications to the b u y e r s . The ins t ruments of promotion
a d v e r t i s i n g , personal sel l ing sales promotion and p u b l i c i t y - have
s e p a r a t e and over lapping capab i l i t i e s and r e q u i r e a careful
def inat ion of communication goods for t h e i r e f fec t ive coord ina t ion .
The promotion portfol io and budget a re de te rmined in a number of
w a y s - according to what can be afforded or as a regular
pe rcen tage of the company' s sa les or to match compet i tors
e x p e n d i t u r e s or by accomplishing speci f ic communication g o a l s . The
r e t u r n on ad rupee spend wil l depend upon t h e co r rec t message
and p r e sen t a t i on . The media vehic le must a l so be chosen ve ry
c a r e f u l l y , though t h i s problem is being inc reas ing ly s tud ie by
media b u y e r s through model building techniques using OTS, Reach,
Mille Rate e t c . The promotion must also have a chosen cycle or
p e r i o d with a careful considerat ion for d e l a y s in impact and
p e n e t r a t i o n . But continous research must be made on efforts of
promotional programmes during t h e i r deve lopment , whi le t hey are
running, af ter t h e i r end .
PRICING
Pricing Strategy
A way to think about making a p r ic ing decis ion is t ha t
p r i c e should be set some where between 1) What the
p r o d u c t costs to make and se l l and 2) i t s value to the
cus tomer . If pr ice exceeds the p e r c e i v e d value of the
p r o d u c t to potential p u r c h a s e r s , i t has no m a r k e t . If the
p r i c e i s below what the product cos t s to p r o d u c e , the
b u s i n e s s can not su rv ive for very long.
Where , between cost and customer value a p r i c e should be
se t i s a s t ra teg ic dec is ion . The factors which influence t h i s
dec i s ion a r e 3) Competitors p r o d u c t / p r i c e s t r a t egy 4) Govt,
imposed const ra ints and 5) the s e l l e r s and t h e b u y e r ' s sense
12
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
of w h a t ' s f a i r . F ina l ly , the most important determinant of
p r i c e i s 6) the m a r k e t e r ' s ob jec t ives - what he i s t ry ing to
a c h i e v e .
Pricing - An Important Variable In Newspaper Marketing
A p u b l i s h e r l ike any o ther en t repreneur i s concerned with
ensuring the financial v i a b i l i t y of h i s company. A prof i tab le
A company i s proof of t h e fact t h a t i t p roduces qua l i ty goods
and s e r v i c e s .
Revenue and prof i t a re thus the d r iv ing force behind the
pub l i sh ing bus iness l i k e any. o the r b u s i n e s s .
P u b l i s h e r s generate t h i s revenue from two sources :
Readers (Circulat ion) and a d v e r t i s e r s . In t h e case of most
mainline d a i l i e s , c i rculat ion revenue does not even cover
Direc t Variable Cost (DVC) l ike newspr in t , p r in t ing ink e t c .
The case of The Times of India , Bombay, the most powerful
ed i t ion of any newspaper of India , i l l u s t r a t e s t h i s fact
conclus ive ly :
Cover p r i c e : Rs.2.00 Mon - F r i ,
Rs.2.90 Sat - Sun
Dai ly Avg Circulation : 3.20 lacs
Avg. Dealer discount : 26.5%
Daily Circulation Revenue : Rs.5.20 lacs
DVC p e r page : 12 pa ise
AVG da i ly pagination : 26
Avg. d a i l y PO : 3.24 lacs
Tota l DVC perday : Rs.10.11 lacs
C lea r ly t h e cover p r i ce needs to be more than doubled in
o r d e r to meet just the DVC and i t would s t i l l not cover
staff c o s t s , news gathering expenses , t r a n s p o r t , insurance ,
13
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
p o w e r , rent e t c . Of course , i t goes without saying tha t any
major increase in cover p r i ce may (and in most c a s e s , i t
indeed does) adve r se ly affect net s a l e s .
In such a s i tua t ion , i t i s ad revenue tha t determines the
p r o f i t a b i l i t y and v i a b i l i t y of a d a i l y . With newsprint costs
taking quantum l e a p s , i t i s only natural t ha t t he increase in
ad r a t e s i s at l eas t commensurate.
PLACE - DISTRIBUTION
Throughout the y e a r s , the term 'market ing ' has connoted two
d i f fe ren t but r e l a t ed p r o c e s s e s , t h e f i r s t dealing with the search
for and stimulation of buyers and the second with t he phys ica l
d i s t r i b u t i o n of goods . Management i s increasingly recognising tha t
d i s t r i b u t i o n po l i c i e s are a potent instrument in the. demand -
s t imulat ing p r o c e s s . Companies are able to effect s t ronger patronage
by offering more than competi tors in the way of s e rv ice or by
cutt ing p r i c e s through successfully reducing p h y s i c a l d i s t r ibu t ion
c o s t s . Many companies s ta te t h e i r d i s t r ibu t ion ob jec t ive as getting
t he r i g h t goods to the r i g h t p laces at the r i gh t time for the
l e a s t c o s t .
POSITIONING
"Batt le For The Minds"
— Al Ries & Jack Trout
v P lease al low me to r ek ind le your memory about tKat excel lent
sc ience f ict ion film 'Fantas t ic Voyage' , where people were pushed
in molecular form inside the body of a sc i en t i s t and t h e i r
fan tas t ic journey throughout the human b o d y .
Posi t ioning i s entering the mind of your p rospec t and staying
t h e r e as long as p o s s i b l e . Positioning of Brand through a set of
both d i s c r imina to ry appeals and non-functional v a l u e s .
Mindshare - Branding - Premium Pricing - Volume -
Revenue - Super Prof i ts - Leader
14
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
Different Ways of Posi t ioning
Product d i f fe ren t ia t ion
There are number of lOOcc mobikes ava i l ab le in India
but Hero Honda - CD 100 scored ove r o the r s s tat ing 4
s t roke engine i s more fuel efficient than 2 s t roke of
Yamaha RX, Kawasaki KB 100.
Vis a Vis competi t ion
To combat Hero Honda, Kawasaki introduced 4 Ace which
wi l l offer fuel economy and power which Hero Honda was
not offer ing.
Positioning in a n iche
In India t h i s t r end i s catching on and publication l i ke
'Pa ren t ing ' was launched which wi l l content i tself with
a ler t ing r e a d e r s to pa ren t a l i s s u e s .
Repositioning
Ex : DESH - famous Bengali weekly to fortnightly and
i t s r i s e from 68,000 copies to 1,28,000 copies
af ter r epos i t ion ing
ROLE OF RESEARCH
Research i s one of the impor tant cont ro l lab le va r i ab l e s in
Marketing Mix, as we have obse rved e a r l i e r , for any product /
s e r v i c e s . It a lso p l a y s a v i t a l r o l e in newspapers a l s o .
LETTERS TO THE EDITOR
To my mind, l e t t e r s to t h e e d i t o r i s the f i r s t ent ry point of
r e s e a r c h in newspapers and t h i s s t a r t e d as far back as the
newspaper was b o r n . Through t h i s window, the ed i to r could
monitor and a s se s s h i s r e a d e r s pe rcep t ion about h i s own product -
15
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
the n e w s p a p e r . Research in form of Opinion Pol ls on publ ic i ssues
a lso e x i s t e d . Gradual ly t he need for formalised r e sea r ch emerged
from 1980 in India to a s s e s s qua l i t a t ive e d i t o r i a l a s p e c t s . Ex :
Ennadu - a Telegu language da i ly from Andhra Pradesh of India ,
wi th e d i t guided r e s e a r c h brought out ed i t ions for each d i s t r i c t to
combat t h e t h r e a t from TV as Andhra Pradesh was t he f i r s t s t a te
to be covered by TV 100% during 1990-91.
Ex: Business Today - Research among CEO and Self en t repreneurs
r e v e a l e d t ha t t h e r e i s a la ten t d e s i r e for an Indian a l t e rna t ive to
' Fo r tune ' with f ea tu r i sh a r t i c l e s .
Ex : Indian Pos t /The Independent - Research among the upperc lass
r e a d e r s revea led tha t a second r>aper with more internat ional
coverage , do have a s lot wi th the main l ine d a i l y .
Side by s ide quan t i t a t ive data was collated- and presented in
var ious forms l i k e Audit Bureau Circulat ion, National Readersh ip
Survey e t c .
RELEVANCE QUANTITATIVE RESEARCH
Product formulation
R e a d e r s h i p Ident i f icat ion
Upgradation of da t a
SYNDICATED RESEARCH V
NRS(I-IV), B R S , U M S , D M S
C SNAP, P SNAP
Since market ing i s now v i r t u a l l y a warfare a d v e r t i s e r s a re seeking
more value re tu rn media . In t h e p rocess more and more information
is r e q u i r e d regarding the ta rge t audience . Thus syndicated
r e sea rch emerged to probe speci f ic de ta i l s for speci f ic n e e d s .
16
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
MARKETING OF NEWS PAPER
Resea rch p l a y s a v i t a l r o l e in marke t ing b o t h in space and
c i r c u l a t i o n
Space Marketing
As we have a l r e a d y o b s e r v e d dur ing p r i c i n g e x e r c i s e t h a t
c i r cu la t ion sa les can not even, cove r DVC le t alone o t h e r A c o s t s . It i s the space marke t ing revenue wh ich cons t i tu tes
t h e backbone of any n e w s p a p e r .
Key a c t i v i t y a reas
D i r e c t / I n d i r e c t s a l e s
Servic ing Agencies /Cl ients
Follow up
Maintenance of good r e l a t i o n s
Innovat ive ideas for p r o d u c t / c a t e g o r y
Recovery of dues
Achieving t a rge t s
Methodology of space market ing
F i sh ing or Mining
Methodology wil l v a r y according to t h e need for t he
p a r t i c u l a r pro jec t and t a r g e t a d v e r t i s e r s .
Ex : The Times of India 150 y e a r s
Sa rad iya numbers dur ing Puja and Diwali
C i r cu la t ion Marketing
The number of newspaper cop ies so ld and p a i d for - i s t h e
foundat ion of a n e w s p a p e r ' s s u c c e s s . Sale of cop ies
d e p e n d e n t on various methods v a r y i n g from p l a c e to p l a c e .
We s h a l l p robe more in d e t a i l s in a s e p a r a t e sess ion about
t h e fascinat ing aspect of c i r c u l a t i o n .
17
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
DEVELOPING A NEW MARKETING EDGE
For long p roduc t development in India h a s taken t h e backsea t
w h i l e t h e market ing men h a v e focussed on c rea t ing new marke ts
for o ld b r a n d s or at t h e mos t , depending upon foreign technology
to make a b reak th rough in t h e m a r k e t p l a c e . But no longer can t h e y
afford to ignore t he backroom boy in R&D. As competi t ion gets
i n t e n s e , b r a n d s p ro l i f e r a t e and brand l i fe spans get s h o r t e r , t he
need fo r in house r e s e a r c h and development i s being felt by
m a r k e t e r s .
But t h e r e i s one bas ic d i f f e r e n c e . R&D can no longer work in
i s o l a t i o n - for as consumer awareness g r o w s , so does t h e need for
p r a c t i c a l b r a n d s t ha t work in t h e m a r k e t p l a c e . Gone a r e t he d a y s
when marke t ing interfaced wi th consumers and R&D wi th technology
and t h e twin never met .
Consumer feedback a v a i l a b l e through market s u r v e y s a re qu ick ly
channe l l ed to R&D which then works over t ime to deve lop models
t h a t can h e l p t h e market ing team to offer consumers with an a r r a y
of p r o d u c t s t h a t a re r e l evan t to t h e i r n e e d s .
E x : Mixer segment was one where foreign t ech jus t would not
w o r k . For an Indian housewi fe ' s heavy du ty gr inding
r e q u i r e m e n t s need a di f ferent kind of p r o d u c t . So, Sumeet was t h e
f i r s t t o launch a s t a in l e s s s t ee l mixer j a r wi th b l a d e s t ha t could
h a n d l e h e a v y gr inding loads and tough motors t h a t a r e capable of
running non s t o p for 30 minu tes .
Bangalore based BPL has made huge s t r i d e s in indigenous R&D - so
much so t h a t i t has begun se l l ing i t s technology back to Sanyo,
i t s fore ign c o l l a b o r a t o r s .
Now F inanc ia l Times is poised to en te r India any d a y and o t h e r
p u b l i s h i n g g ian t s a r e a l so keenly awaiting t h e i r t u r n . Publ i sh ing
moghuls l i k e Rupert Murdoch has a l r eady made h i s p resence
fe l t in t h i s subcontinent by acquir ing STAR TV.
18
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library
In t h e final a n a l y s i s , i t ' s R&D which might wel l be t he ult imate
market ing edge for a m a r k e t e r ' s b r a n d s . So far Indian Companies
may d e v e l o p technology inhouse but i t i s not taken to i t s logical
conclusion - the m a r k e t p l a c e . But wi th l i b e r a l i s a t i o n , companies
w i l l h a v e to dec ide w-hether t hey want to p a r t n e r a world l eade r
or compete with them wi th indigeneously deve loped technology.
19
ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library