Marketing Plan for The Times Newspaper - Essay Example

Marketing plan for The Times newspaper Information processing forms the basic function of e-business and the internet is a widely used tool during the contemporary period. This study focuses on the strategic operations of one particular newspaper called The Times and how it uses marketing tactics in a bid to establish a new product. Particular attention would be paid mostly on marketing communications strategy which is the crux of study which seeks to highlight how the present day media are portrayed as a way of gaining the favor of the customers. In this case, the above mentioned newspaper is intending to launch a new product and various marketing related strategies will be used in this endeavor. Recommendations will also be given as to how the organisation can effectively use marketing strategies during the period of launching a new product. Introduction In an attempt to evaluate the marketing strategy of The Times newspaper of South Africa by inferring to the marketing theory, it is imperative to begin by defining the term marketing as a way of gaining a clear understanding of the whole concept. Thus, “marketing is the art of finding, developing and profiting from opportunities,” Kotler (1999 p. 36). A need satisfying product or service is exchanged for a certain value and there are mainly four variables that constitute a market offering and they are: product, distribution/place, price, and marketing communication (Strydom, 2000 p.2). This is widely regarded as the marketing mix and to a greater extent, the success of any marketing strategy employed by an organisation such as The Times in this particular case is strongly dependent on the effectiveness of its marketing communication. There must be a good flow of information between the buyer and the seller to enable the buyers to make informed decisions which always takes precedence before the actual purchase. Market analysis A critical analysis of the marketing strategy employed by The Times newspaper of South Africa shows that the organisation triumphs on the effective use of marketing communication tools such as the internet. An effective marketing communications system allows feedback from the consumer to seller via the use of new marketing communication tools such as the internet (Lancaster and Reynolds 1999). Theoretically, marketing communications can be defined as, “the process of presenting an integrated set of stimuli to a market target with the aim of raising a desired set of responses within the market target and setting up channels to receive, interpret and act on messages from the market to modify present company messages and identify new communications opportunities,” (Lancaster and Reynolds 1999:149). Thus, as both sender and receiver of market related messages, the company can influence customers to buy its brands as well as stay in touch with its market so that it can adjust to changing market trends. Marketing communication is one element that influences the consumers to buy certain products in response to the messages communicated to them. The Times newspaper in South Africa is a daily newspaper that boasts of more than 140 000 subscribers and a substantial number of more than one million copies in circulation every day across the whole country. However, as going to be critically analysed with regards to the existing marketing strategy, it can be noted that more still needs to be done with reference to marketing structure in the face of competition in the market. Basically, the marketing communication strategy also called the promotional mix or promotional strategy of a business consists of six marketing communication elements namely: advertising, personal selling, sales promotion, direct marketing, publicity and sponsorship (Cant et al 2000). Particular attention would be paid mostly on marketing communications strategy which is the crux of study which seeks to highlight how the present day media are portrayed as a way of gaining the favor of the customers. South Africa boasts of a population of more that 30 million people from diverse cultural backgrounds. It must also be borne in mind that there is a diverse structure of ownership and the market is characterised by fierce competition where there are numerous other actors who publish on a daily as well as weekly basis. In view of the structure of the media market in South Africa, circulation of more than one million copies each day is more like a drop in the ocean since there are many people who can buy the papers if the marketing strategies in place are revised so as to appeal to the interests of the readers. Overview of structure of The Times newspaper Whilst the paper is a national daily newspaper, it can be noted that its circulation is mainly concentrated in metropolitan areas where the bulk of the readers are found. Being an informative paper that publishes current events on a daily basis, the paper ought to expand its geographical area of coverage so as to be able to reach other consumers who are disadvantaged by the geographical factor of distance. Whilst the organisation is one of the most reputable media houses in the country, there is need to revise the aspect of distribution which is one of the most important tenet of marketing communication which is very strategic in determining the performance of the newspaper in terms of availability. It can be noted that the aspect of distribution has a direct effect on the number of hard copies in circulation. Indeed, the price is reasonable and can be afforded by any ordinary person but the only set back, though to a minor extent, is the aspect of distribution. It can also be noted that every effort is made to ensure that the customers are satisfied and those who may not be satisfied are free to claim a refund which would be cordially facilitated. Marketing strategy A critical evaluation of the marketing strategy employed by The Times newspaper shows that the internet plays a vital role in almost all facets of communication with regards to marketing of the newspaper. The internet has bridged the gap of physical distance where the bulk of other readers located in different geographical areas can easily access the paper either on the web or from their phones. Subscriptions can be done online and the readers have access to send their feedback to the marketers of the paper as well as the editors. The use of the internet has proved to be a very strong instrument which has made it possible for the paper to be accessible anywhere regardless of the physical distance. Indeed, communication forms the backbone of doing any kind of business in any kind of organisation. As a result of the technological advancements especially as a result of the advent of the internet, it is now possible to conduct any business online. Customers can place their orders online at any given time and it is possible to access feedback for 24 hours a day. It is therefore prudent during the contemporary period of New Information and Technology to adopt and online ordering system like the case with The Times in a bid to improve the performance of the organisation so as to increase profitability as well. Whilst the company has been fairly performing with an equally fair market share, it has been noted that there is need to expand to become a force to reckon with in the communication industry in the country. A new product is on the offing and this is a travel and tourism section that has to be launched and will be published in the newspaper everyday and will comprise of two additional pages. Tourism is a booming industry in South Africa and The Times can capitalize on this to its advantage through offering products that would appeal especially to the interests of the travelers. The following marketing strategy that is going to be evaluated would attempt to address some of the major steps that can be taken into consideration to make the new product viable and appeal to the new customers. Planning Planning is considered to be the starting point of any management process (Bates et al 2006). In other words, there is need to determine in advance what you want to achieve and this will help you to visualise the end result and set objectives accordingly. Therefore, we can say that planning is the process in which objectives are decided upon and the plans on how to reach them are put together and this is the first strategic position of The Times. Planning is very important because it gives the people in the organisation an idea of the direction in which the business is going. The first step in planning for strategic changes involves an assessment of the organisation’s environment as going to be illustrated below. The Times like any other newspaper operates in a market that is characterised by competition from other players. Indeed, it is imperative to segment the market before rushing into launching a new product which particularly targets the travelers in response to the booming industry of tourism in the country. Market segmentation Market segmentation is defined as, “the process of dividing a total market into market segments of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix,” Strydom et al (2004:61). The newspaper has to sub divide the market on the basis of mainly social factors such as status as well as levels of income earned. In most cases travelers are people who can afford to spend extra money on leisure and these are the people who would be targeted for this new product. Actors in the tourism industry are also targets in the market expected to place advertisements in the paper thereby increasing revenue generated in the long run after the project has taken off. The youngsters on the other hand are also part of a target market as these provide a fertile industry of potential customers for the paper. An additional section of the newspaper will also be educative hence the need to cater for the tastes of young people who are still of school going age. The tourism industry in particular has no age restriction hence it will be prudent for The Times to adopt a strategy that seeks to put the potential customers in groups where they share similar interests. Differentiation Given that the media industry itself is highly competitive with other companies, The Times has sought to establish itself as a force to reckon with in terms of its market position thereby giving itself a competitive edge over other competitors. Differentiation in this case is a noble strategy that has its own advantages in view of the new product to be launched by the paper. In this context, in a differentiation strategy, an organisation seeks to be unique from other competitors in the industry where it offers products or services that are valued by the customers. In this regard, it has to select one or more products with attributes that are perceived as important by the customers and it attempts to uniquely position itself in the market in order to meet such unique needs. For instance, the management can choose to customise their products where they take into consideration the needs of customers in order to appeal to them and apparently deterring them from seeking the same services from somewhere else and this can be done by taking part in the campaign to promote tourism. Ultimately, the firm will be rewarded with a handsome price for being unique in the services it provides. Basically, positioning is all about how a brand or company is positioned or perceived in the minds of a target group of consumers. The paper should be readily available to the target audience and promotional incentives ought to be offered as a way of appealing to the customers. Strategic Decisions There are many successful business organizations in the market that are strategically so viable to such an extent that rival competitors can hardly exceed their performance. Such stable status can be achieved only when they apply certain strategies that can hardly be imitated by the competitors for long-term survival and stability. Where there are clearly defined marketing objectives, the likely chances of success are quite high. The major objective in this case is to maximize profit and achieve the highest possible return on the amount of money that has been invested in business. The new product being offered by The Times has been strategically designed to appeal to new customers who in turn will mean more profit on behalf of the company since the rate of sales would have increased. Another main objective in this case is that of customer orientation where as has been illustrated, all the marketing efforts are meant to satisfy the needs of the customers profitably. The customer is the king in most cases and effort should always be made to ensure that satisfactory services are delivered to the customers. Another objective of marketing in the case of a new product being rolled out into the market is to increase in sales and market share in view of the competition offered by the other rival competitors. The aim would be to increase profits while at the same time striving to minimise costs. This would prompt the organisation to continually strive to survive and grow especially in difficult circumstances. The ever-changing environment makes it imperative for any organisation to quickly adapt to inevitable changes that may negatively impact on its operations if careful consideration is not taken. A new product is mainly designed to appeal to a large number of new customers with the aim of increasing profitability and the organisation in question has to find the best possible means of launching a product that would bring loses. Estimated cost Basically, it is estimated that the cost of producing one page for the publication in question is R10 and the new product to be launched in the paper will comprise of two additional papers which means that per every copy produced, there would be an extra R20 added. Embarking on an investment drive like this one is not an overnight event but it requires careful planning. A budget of R600 000 has been set aside and is expected to cushion the operational costs at a desired level for a certain period to meet the extra costs of producing additional pages. The paper is expected to generate more sales and adverts through embarking mainly on promotional incentives such as offering discounts to regular subscribers as well as giving free copies to potential consumers. The marketing strategy consisting of six marketing communication elements namely: advertising, personal selling, sales promotion, direct marketing, publicity and sponsorship is most ideal.Since the paper has been in business for quite a long time, launching a new product though it would spend quite a fortune as additional pages would be required, the total costs would not be expected to offset its operational costs. If properly implemented, the organisation expects to start reaping returns on their investment within a period of between six to eight months as it would require concerted efforts in conscientising people about the benefits of the new product. Conclusion Over and above, it can be noted that marketing strategy is primarily concerned with the process where a need satisfying product or service is exchanged for a certain value and there are mainly four variables that constitute a market offering and they are: product, distribution/place, price, and marketing communication. To a greater extent, the success of any marketing strategy employed by any company is strongly dependent on the effectiveness of its marketing communication. There must be a good flow of information between the buyer and the seller to enable the buyers to make informed decisions which always take precedence before the actual purchase. In its endeavor to establish a new product, The Times ought to adopt strategies that would allow them to clearly distinguish their target market in a bid to have some competitive advantage over other rival competitors who also operate in the same industry. Summary Communication plays a very important role in marketing a product to the customers. The advent of the internet has brought about sweeping changes in the way organisations operate as well as market their products. There is need for an organisation to segment its market in order to clearly identify their target customers in order to have a competitive advantage over other rival competitors that may exist in the market. As noted, there is need for The Times newspaper to effectively use marketing communication in order to successfully launch a new product to the customers. References The Times [official website] http://subscriptions.sundaytimes.co.za/promotion1.aspx?gclid=CIH0mIWxyZ0CFdBb4wodlA1OsA Accessed on 19 October 2009. Bates B. et al (2005). Business Management: Fresh perspectives. Pearson. Cant M.C., (2000). Marketing Management. 4th Edition. CT. Juta and Co Ltd. Kotler P., (1999). Kotler on Marketing: How to create, win and dominate Markets. London. Free Press, Lancaster G. & Reynolds P., (1999). Introduction to Marketing: A step by step Guide to all the tools of Marketing. Kogan Page. Strydom J. (2004). Marketing. 3rd Edition. CT. Juta & Co Ltd. Read More