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MEDIA & THE ECONOMICS

TOPIC:

STRATEGIES OF SEGMENTION OF DEMAND


IN THE MAGAZINE INDUSRTY AND THEIR
IMPORTANCE FOR MAGAZINE PUBLISHERS
WHAT IS SEGMENTATION?
Segmentation is a marketing term which refers to the process of
dividing the total market into groups of segments of customers
with similar need or preferences (Shankar: 2008, 8).

Market segmentation strategies are used to identify and further


define the target customers and to provide supporting data for
marketing plan element such as positioning, product
differentiation, undifferentiated approach and product lines.
CRITERIA USED IN DEFINING
SEGMENTATION
Profitability.
Similarity of needs of potential buyers within a segment.
Differences of needs and buyers across segments.
Potential of a marketing action to reach segment.
Simplicity and costs of assigning potential to segments.
BASES OF SEGMENTATION
Geography- regional differences
Demographics- household size

Psychographics- lifestyle

Benefits sought- product features

Patronage/usage pattern- usage rate 80-20 rule


Frequent/Infrequent, Subscriber/single ticket, Plan-
ahead/impulse
VARIOUS TYPES OF MAGAZINES
DAILY
WEEKLY

FORTNIGHT

MONTHLY
STRATEGIES OF SEGMENTATION
IN THE MAGAZINES INDUSTRY
Launching new titles.
Launching new low circulation titles.

Analysis of the break down in total expenditures on customer


magazines between cover sales and advertising.
Product positioning.

Product repositioning.

Group potential buyers into segments

Group products into categories

Develop a Market-Product Grid and estimate size of the


market
Select target markets

Take marketing actions to reach target markets


LAUNCHING OF NEW TITLES
launching new title, aimed at more specialised segments of the
market. In this manner titles aimed at women, man, or
teenagers became divided into numerous segments according
to age, income, life style and attitudes.
LAUNCHING NEW LOW
CIRCULATION TITLES
Changes in the cost structure and economic organisation of the printing
industry during 1980s reduced the cost of publishing high quality magazine
and catered to increasing fragmented consumers demand by launching new
low circulation titles. This strategy meant that magazine publishers relied
quite heavily on economies of scale rather than economies of scope.

Nevertheless, the arrival of desk-top publishing and other technical


advances made it much cheaper to produce new titles with lower print runs.
Evidence of acceleration in strategies of market segmentation can be found
in the growing number of titles in UK for example, business tittles grew by
23% to 5,713 between 1989 and 1998 while in the same period the number
of consumers tittles grew by 27% to 3,174 (PPA:2000).
ANALYSIS OF THE BREAKDOWN IN TOTAL
EXPENDITURE ON CONSUMER MAGAZINES
BETWEEN COVER SALES AND ADVERTISING
Analysis of the breakdown in total expenditure on consumer
magazine between cover sales and advertising overtime shows
a steady increase in the production of revenues. It increases
circulation, to calculate the likely returns from brand image
created by magazine title to help to expand the brand across
additional product markets and also to ensure its survival, a
magazine constantly needs to monitor and adapt its editorial
and brand image to ensure it maintains an economically viable
constituency.
PRODUCT POSITIONING
Product positioning, the place an offering occupies in the minds
of consumers relative to competitive products.
PRODUCT REPOSITIONING
Product repositioning, changing the place an offering occupies
in the minds of consumers relative to competitive offerings.
THE IMPORTANCE OF THE
STRATEGIES
Segmentation can be seen as a unique strength of the
magazine publishing sector in terms of offering convenient and
cost effective access to particular audiences. Because the ability
to target narrows specialist interest, lifestyle and professional
group is an obvious selling point in advertisers.
CONTINUING
An advantageous feature of segmentation is that it creates possible
synergies with other commercial activities. For example, masthead
television programme not only capitalize or magazines established brand
appeal but may also provide enticing possibilities for sharing editorial and
product costs (Wood: 1998).

Many successful magazines have used segmentation of demand to develop


complementary products and services. EMAPs strategy is to try to get a
multimedia platform for very strong brands; the brands are those that have
achieved enormous success with their target market such as Smash Hits,
FHM, etc.
CONTINUING
The aim is to extend relationship between; publisher,
consumers and advertisers. Diversification has allowed EMAP
to approach exploitation of its brands and its association with
specific audience segments in more flexible or media neutral
way. The media neutral approach implies that magazines are
increasingly vulnerable to threats from alternative media.
Magazines are no longer the only bridge between narrow
audience segments and advertisers.
CONCLUSION
Strategies of segmentation are clearly at the heart of costumers
and business magazine publishing sectors. Segmentation of
audiences on readership into sub-national specialist groups
allows the industry to expand its products overseas in way that
other mass media often find it difficult.
REFERENCE
Meech, P. (1999) Advertising, in J. Stokes and A.
Reading (eds), The Media in Britain, London:
Macmillan Press. pp. 2540.
Middleton, P. (Chair) (1996) Report of the Advisory

Committee on Film Finance, London: Department


of National Heritage, July.
Moschandreas, M. (1994) Business Economics,

London: Routledge.
Noam, E. (1993) Media Americanization, national

culture, and forces of integration, in E. Noam and


J. Millonzi (eds) The International Market in Film
and Television Programs, Norwood, NJ: Ablex pp.
4158.

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