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Launching a Womens Magazine - Assignment Example

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The paper "Launching a Women’s Magazine" tells that the performance of any company totally depends upon the sales of its products, which in turn depends upon its marketing activities, which, again, are dependent upon the marketing environment prevailing at a given point in time…
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Launching a Womens Magazine
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Launching a Women's Magazine Introduction The market for women's magazines was estimated to be worth 700 million in 2008, which is up by 21% in value and 7% in volume as compared to 2003 (Mintel International 2008). Though this can be considered a sound market, it is noteworthy that the sales have fallen since 2006. Before setting out with the production and launch of a product, an organisation has to consider several factors that affect its success in the market. The performance of any company totally depends upon the sales of its products, which in turn depends upon its marketing activities, which, again, are dependent upon the marketing environment prevailing at a given point in time. The marketing environment being essentially dynamic, it is essential for the organisation to keep up with the changes (Marketing Environment 2004, p.34). The marketing environment comprises of forces that are internal and external to its marketing functions. Internal forces are those that are inherent to the organisation and hence, can be controlled by the organisation. External forces affect the industry as a whole and cannot be controlled by individual organisations. It is imperative for an organisation to predict, recognise, analyse and understand these forces, and strategically plan its marketing activities. 2. Macro-environmental factors Macro-environmental factors include political, economical, social and technological factors along with demographic, cultural and legal factors that affect a marketing environment. Government policies, political stability, legislations, and prevailing domestic politics and international politics are factors that can affect the publishing industry. Economic factors of a region greatly influence the purchasing power parity (PPP) of that region. The higher the purchasing power parity in a region, the higher its buying potential (Marketing Environment 2004, p.41). The socio-cultural forces refer to the attitudes, beliefs, norms, values and lifestyles of individuals in a society. These forces can present opportunities and pose threats to the magazine sector of the industry. Increasing health challenges can lead to increasing sales of healthcare-related literature. Technology shapes needs as well as helps bring down prices. Technology also helps easy distribution of products. Technology has revolutionized advertising, and launching such a superior product as a women's magazine essentially needs promotion with high quality, creative advertisements. Some macro-environmental factors that affect the introduction of a new women's magazine into the market can be cited here. The possible threat of an EU-wide imposition of VAT on books and magazines can greatly affect the market of a new women's magazine. The Office of Fair Trading has recommended that the distribution of magazines should be opened up to greater competition (PEST analysis n.d., p.17). Under the initiative of The Reading Agency, funded by the Government, the year 2008 was announced as a National Year of Reading to encourage reading among the younger people (PEST analysis n.d., p.18). This is likely to have a significant impact on the market of a new women's magazine, and the possibility has to be thoroughly explored. Publisher's rights regarding territories where they are allowed to sell their publications are also factors that have to be looked into while launching a new women's magazine. 3. Micro-environmental factors Micro-environmental factors are those external factors that are close to the company "that affect its ability to serve its customers" (Marshall n.d.). The micro-environmental factors include mainly suppliers, marketing intermediaries, competition and customers. Suppliers provide the resources that are needed to produce the products. They form an important link in the value delivery system (Marshall n.d.). Increase in raw material prices will affect the cost of production, which will inevitably lead to an increase in price. This can affect the marketing environment negatively. Maintaining close relationships with the suppliers can help in ensuring timely production of quality and competitive products. In the case of magazines, it has also to be ensured that green raw materials are used and eco-friendly methods are used for their procurement. The increase in the number of marketing intermediaries will add to the price of the product. The margins taken up by the intermediaries affect the price of the product. An efficient and smooth system of marketing and distribution can be adopted with minimum intermediary levels when the product is as easy to handle as a magazine. An organisation's success or even survival depends on its success in catering to the customer's needs and tastes. In the project under consideration, timeliness of the delivery is of utmost importance. A clear awareness of the customers' expectations and the organisation's ability to deliver the same will help the organisation hold its market. The most prominent factor that affects the marketing dynamics is competition (Marketing Environment 2004, p.34). The organisation should keep itself aware about other leading magazines in the market, the styles they follow and the topics they deal with, their marketing strategies, the nature and demographics of their readers, and their strengths and weaknesses. Continuous monitoring of competition can help the company develop a competitive advantage. 4. Key stakeholder groups and their impact on marketing decision making Decision making is the most important of all business activities. The success of a company depends mainly on the right decisions made by the right people at the right time. Organisations have several decision-making groups such as the employees, the managers, the directors and the shareholders. For an organisation engaged in publishing a magazine, the readers and the society can also make a significant impact on its decision making. Decisions are classified based on the predictability of the decisions (Decision making and stakeholders n.d.). Programmed decisions are direct and repetitive, and can be dealt with, with the help of routines and procedures. Other decisions that are varied and unstructured will need individual attention and will be dealt with at different levels of the organisation. They are usually based on the time available for decision-making. For a women's magazine, short-term operational decisions may be more often related to production such as procurement of raw materials, the process of production, bringing out the finished product, etc. These decisions may be made at the operational or the supervisory levels. Periodic control decisions are made in the course of monitoring the organisation's operations, regarding budget variances, effectiveness of schedules, delegation of jobs and responsibility, advertisement to content ratio, routine and new supplements, features, columns, etc. These decisions are made by department or section heads. Strategic decisions may relate to the ideology, political stances, opinions, etc. held by the magazine that may have a nation-wide or vast impact. Senior managers, senior editors, directors and shareholders play a role in making these decisions. All decisions affecting the creative aspects of a magazine will be made in consultation with the editorial department. In the case of a magazine, readers' opinions and social issues will have to play a significant role in decision making. 5. Consumer behaviour theory 5.1. Values, attitudes and behaviours of consumers The readers of a women's magazine may be influenced by the values that form part of their cultural background. This culture will play a prominent role in the choice of their lifestyle, their grooming, their food habits, their conduct, their buying behaviour and their consumption pattern. These factors will affect their reading choices and will also influence their responses to advertisements. Discrimination and other social issues will also have an impact on the reader's opinions and preferences. Not only political stances but also environmental and humanitarian issues will influence the tastes of the readers, especially women. The diversity of cultures among the readers will have to be understood and approached in the most effective manner so as to achieve maximum readership for the magazine. The magazine should not only cater to women from different cultures, but also see to it that the beliefs of these readers are not hurt or offended. The values, attitudes and behaviours of any consumer are influenced by different groups called reference groups. The organisation should have a clear insight into these groups. These groups can be divided into primary reference groups and secondary reference groups. The primary reference groups are divided into membership reference groups (to which the consumer belongs and by which is directly influenced), aspiration membership group (to which a consumer does not belong but desires to belong), disclaimant reference group (to which he belongs but does not want to belong and tries not to be influenced by it) and avoidance group (to which he neither belongs nor he wishes to belong) (Understanding consumer behavior 2004, p.68). Secondary groups are religious, professional and other formal groups with which consumers, in this case readers, interact. The leaders of these groups play a role in shaping their opinions. Marketing efforts should identify and target these role models. 5.2 Consumer learning theories and understanding likely consumers Several psychological factors like motivation, perceptions, beliefs and attitudes influence consumer behaviour. Needs motivate an individual to make purchasing decisions. According to the needs hierarchy, physiological needs are the most basic needs followed by security needs, social needs, esteem needs and self-actualization needs (Understanding consumer behavior 2004, p.71). Consumer learning can be the result of external stimuli or internal mental processes. Behavioural theorists emphasize the former while cognitive theorists stress on the latter. Desire spurred by a stimulus to fulfil a need is called a want. Marketing activities should focus on understanding and creating these wants and placing products in such a way that a strong desire to fulfil these wants is invoked in the customers. Gaining insight into the entertainment and information needs, problem solving needs of day-to-day and long-standing issues, social, cultural and professional needs, needs of grooming and etiquette, etc. can help get a focus on the prospective readers of the magazine. Perception is the process by which an individual selects, organizes and interprets stimuli into meaningful thoughts (Understanding consumer behavior 2004, p.71). Customers link their perceptions to their needs, wants, past experiences and what they consider to be true. For example, an individual reading a particular newspaper or magazine may perceive its contents to be a true reflection of his/her environment. Perceptions are influenced by sense, reality, risk etc. Gaining insight into the readers' perceptions can facilitate production of a magazine of the right style, quality, content and price. Beliefs are descriptive images, thoughts or opinions that one may hold about certain things or issues. Attitudes are expressions of how much one likes or dislikes a thing, an issue, an individual or an action. Beliefs and attitudes are based on own experiences or interactions with others. Understanding beliefs and attitudes also can help view the target readers in the right perspective. 5.3 Decision making and information processing A consumer goes through a series of stages before actually buying a product. These stages are generally five in number and can be referred to as problem recognition, information search, evaluation of alternatives, purchase decision, and post purchase evaluation (Understanding consumer behavior 2004, p.74). The process of buying begins when an individual identifies an unsatisfied need. This need may arouse internally, as in the case of hunger, or may be triggered externally, as in the case of an advertisement. Marketing professionals try to invoke these needs in people and help them identify these needs through products, pricing strategies, attractive packaging and urging advertisements. Similar techniques can be used in the creation of a market for the magazine also. The next stage of the decision process involves collection of information regarding a product and competing brands. On the other hand, the consumer may rely on his/her own past experiences of a product or similar products. Information may be gathered from family and friends, advertisements, articles, through free trials etc. (Understanding consumer behavior 2004, p.74). Extensive evaluation is not undertaken for low-price products of day-to-day use other than consideration of the price. This is not the case for high-price products of infrequent use. For example, if the magazine is priced high with lots of content, the print style, the quality and nature of its contents, the writers' profile, the name of the publishing company and whether it is a known company, etc. may be taken into consideration. If a reader finds the magazine interesting after reading it, then this might lead to purchase of its next issue or a regular subscription. The reader may also share her reading experiences with friends, family and reference groups. On the other hand, if the reader is dissatisfied with the magazine, the negative experience will get passed on too. 5.4 Consumer segmentation A market segment or a consumer segment is a group of existing or potential consumers with some common characteristics which are relevant in explaining and predicting their consumption patterns and their response to a supplier's marketing stimuli. Consumer segmentation identifies a consumer base with its needs, wants and characteristics, which is targeted with informed marketing techniques. When focusing on a consumer segment, the marketing researchers can understand their needs, attitudes and what could be a consumer's final purchase decision. Consumer segmentation further helps market researchers conduct in-depth studies into the factors that influence the segment's preferences, tastes, choices and purchase decisions. Anna Gough-Yates (2003) have thrown light on several methods of segmentation of the women's magazine market that are based on socio-economic factors, class structure and social values, media exposure, lifestyle, outlook, geo-demographic factors that combine life-cycle, income and socio-economic status, etc. The women's market segmentation techniques have passed through several phases and evolved over the years. The readers of women's magazines, in today's world, can be categorised on the basis of age - teenagers, young women, the middle-aged, the elderly, etc. Another basis for segmentation can be income earning - working women, non-working women, housewives, part-time employed, full-time employed, unemployed, laid off, etc. The readers can also be segregated on the basis of colour - the whites, the browns, the blacks, etc. Categorisation can be done based on marital status - married, single, divorced, widowed. Sexual preference has also been accepted as a basis for segmentation. Single mothers have grown to become a significant market segment in the recent times. Another form of categorisation can be based on the racial background - Asians, Africans, natives, Spanish, Filipinos, Latinos, etc. Segmentations can be based on profession, social class, affluence, lifestyle, shopping preferences, reading preferences, etc. Segmentation is also done based on nativity - natives, immigrants and semi-immigrants. 6. Market research 6.1. Key market research objectives The key market research objectives that need to be considered would include studying the preferences, tastes and choices of the target readers so as to achieve maximum readership for the new women's magazine. For this purpose, the preferences, tastes and choices of readers belonging to the separate market segments will have to be studied separately. Furthermore, preferences, tastes and choices of these segments with regard to content falling under different titles including, entertainment, current events, politics, social issues, environmental issues, professional issues, issues linked with daily life, day-to-day problem handling, personal finance management, investment, sports, fashion, etiquette, lifestyle, housekeeping, careers, business, fiction, health issues, issues related to beauty and grooming, legal issues, especially those that concern women and children, family matters like raising children, relationships and counselling for such, etc. should be studied. The research should also help in choosing the right style and design for the magazine. This would require close scrutiny of the various competitors in the market. Choosing the appropriate language style would also be a key objective of the research. Selecting the right design for the magazine would be another key objective. Lastly, but most importantly, would be the estimation of the expected advertisement revenue and the advertisement to content ratio. 6.2 Ethical considerations in market research Research for the launching of the women's magazine has to be carried out in the various and wide-ranging market segments that include women of all ages, from different classes, from different professions, from different sections of the society, etc. Researchers should make sure that the research does not cause harm to the participants' self-esteem, physical harm, stress, harm to career prospects, etc. (Bryman & Bell 2007, p.133). If confidentiality or anonymity is requested by the participants, their wish should be honoured. If required, a confidentiality agreement should be prepared and appropriately signed. If there is any prospect of harm to the participants, informed consent should be obtained. The right to privacy of participants should be honoured and personal information and data concerning participants should be kept confidential. Deception should be minimised. Deception occurs when researchers present the information collected during the process of research as something other than what it actually is. The researchers should essentially comply with the 1998 Data Protection Act. The researchers "need to declare sources of funding and support that may affect the affiliations of the researcher, causing conflicts of interest" (Bryman & Bell 2007, p.143). Information about the research should be communicated honestly to all interested parties. 6.3 Secondary data sources Some data that relate to women's magazines and their existing markets have been accessed. They are as follows. Internet sources: Women's Magazines - UK - December 2008, viewed 17 January 2009, http://academic.mintel.com/sinatra/oxygen_academic/new_reports/&list=latest_items/display/id=220153 This report gives the market value of women's magazines in 2008 as compared to 2003. The report considers some key issues, including women's involvement with the internet, teens' attitudes, celebrity gossip, etc. This report can be valuable for this research as it addresses preferences and attitudes of certain segments of the market. UK Consumer Magazines, 2007, viewed 17 January 2009, http://www.reportlinker.com/p049348/UK-Consumer-Magazines.html The report examines the whole of the consumer magazines market. Though this report is not solely pertaining to women's magazines and is dated 2007, it gives the market value of different kinds of magazine, women's interests in these magazines, other titles that interest women and information regarding proportion of men who read women's magazines. Such information can be used in the market research for the new women's magazine. The report also makes forecasts till 2011. Consumer Magazines Market Report, 2008, viewed 17 January 2009, http://www.bharatbook.com/bookdetail.aspbookid=9980&publisher= This report gives information regarding women's weekly, monthly and lifestyle magazines. This also throws light on information regarding online magazines, which is relevant for the research on the new women's magazine. Forecasts have been made up to 2012. Lifestyle Magazines Market Assessment 2008, viewed 17 January 2009, http://www.researchandmarkets.com/reports/603973/lifestyle_magazines_market_assessment_2008 This is a report of Key Note Publications Ltd., giving information of the recent launches and closures of certain lifestyle magazines. The report gives information on women's lifestyle magazine market and the online presence of women's lifestyle magazines. The report makes some forecasts up to 2012. The data presented mainly relates to the US scenario, however the report may be studied for its information regarding the online magazines. Online articles: 24/02/03 - UK's No.1 young women's magazine goes online as emap Elan announces launch, viewed 17 January 2009, http://www.emap.com/press-office-item.aspResource=2576 This is an article published in 2003, which makes it slightly irrelevant today, about the launch of the young women's online magazine, moremagazine.co.uk. The article gives an overview of its content channels. The article may be studied for the range of content titles presented by the online magazine. Lifestyle Magazines - Market Assessment, April 13, 2007, viewed 17 January 2009, http://www.prlog.org/10013543-lifestyle-magazines-market-assessment.html This is an article on the UK market for men's and women's lifestyle magazines. The article is slightly outdated. However, the article gives some interesting information relating to certain market segments. 6.4. Primary research techniques Personal interview is one of the most widely used primary research techniques. Face-to-face personal interviews have several advantages as compared to non-personal interviews. The interviewee can be put at ease by the interviewer. There is opportunity for feedbacks. In case of eliciting sensitive information, the interviewee can be assured of confidentiality of the data by the interviewer. Probing is easier in a face-to-face interview where the interviewer gets the opportunity to zero in on specific details that may not be possible in a non-personal interview. In personal interviews, the length of the interview may be longer and there is more quality for the information gathered (Survey research 2005, p.101). However, personal interviews are not without disadvantages. They include lack of anonymity, high costs and necessity for callbacks. Telephonic interviews have been steadily gaining acceptance in the recent times as one of the best alternatives to face-to-face interviews and mail surveys. These interviews are preferred to others due to speed in data collection, potential for receiving high-quality samples, increased co-operation from respondents who are reluctant to face personal interviews, possibility of conducting interviews in high-risk areas, comparative easiness in collecting responses that a respondent may find difficult to reveal otherwise. Callbacks are easier for telephonic interviews (Survey research 2005, p.105). Telephonic interviews are not without disadvantages. As the interviewer is not able to face the interviewee while handling sensitive issues, the respondent can hang up the phone and cut the conversation in the middle of the interview. The answers tend to become short and inadequate. Coordination between the interviewee and the interviewer is not possible and the interviewee might begin speaking before the interviewer is ready to record the response. When directories are used as sampling frames, samples may not always be representative of the population under study. In computer-assisted telephone interviewing, the answers are directly entered into the computer. The questions inevitably will have to be close-ended. In mail surveys, the same respondents are surveyed at different points of time to note the changes that have occurred in a specific period of time pertaining to the research topic. The method is cost-effective and can be administered from a single point for better control. The respondents can answer questions at their convenience, taking their own time (Survey research 2005, p.108). However, the method has certain limitations due to the absence of a qualified interviewer. Moreover, there is a high rate of non-response. 6.5 Costs of research techniques Icology Research Solutions (n.d.) has given some details regarding the costs involved in undertaking face-to-face personal interviews, telephonic interviews and mails surveys along with other research techniques. These costs can be taken as a reflection of the general trends in the market for carrying out these research techniques. However, these costs need not be taken at face value, as every research topic is unique and will have its own features and specifications that need a separate treatment from other topics. These may add to the costs of undertaking the research techniques. Besides, the accessibility to the respondents may be different for different research projects. This can incur increased transportation costs. If for any reason the researcher feels that a fresh sample has to be chosen for study instead of the already chosen one due to inadequacy of feedbacks, ambiguity of responses, incomplete responses, etc., this might duplicate such costs. The costs charged by Icology Research Solutions are re-presented here to give a fair idea about the expenses that might be incurred in conducting the primary research techniques described above. As per the breakdown of costs provided by Icology Research Solutions (n.d.), face-to-face interviews that might stretch maximum to 60 minutes and would be limited to a maximum of two interviews per day would cost 1500. Transcription of tapes, written reports, incentives, travel and expenses will be charged extra. Postal questionnaires would cost between 2 and 4 per questionnaire depending on the size of the project. This will not include the charges of data entry, incentives and project management. Telephone and computer-assisted telephone interviews will cost between 4 and 30 per completed interview, depending on whether the target customer is a business entity or consumer, number of calls, length of calls, etc. These costs do not include report writing, analysis, presentations, project management, etc. 7. Conclusion It is imperative for any organisation to predict, recognise, analyse and understand the forces that affect its marketing environment in order to strategically plan its marketing activities. This is especially true for an organisation launching a product as dynamic as a women's magazine, which, expectedly, has a marketing environment that is extremely vibrant. The EU-wide imposition of VAT on books and magazines, opening up of distribution of magazines to greater competition, announcing the year 2008 as a National Year of Reading, and publishers' rights are some factors that influence the marketing environment relating to women's magazines. For a women's magazine, other than the employees, managers, editors and shareholders, the society and the readers are also key stakeholders who influence marketing decision making. Values and attitudes are factors that will influence the readers' buying decisions. The target readers can be categorised into several segments based on attributes ranging from demographics to lifestyle. The key objective of market research would constitute gaining insight into these segments of readers so as to achieve maximum readership with the help of the right marketing strategies. The market research should honour participants' desire for anonymity, confidentiality, etc. The research should also study the impact of online magazines in the magazine market scenario. References Decision making and stakeholders n.d., viewed 17 January 2009, http://www.thetimes100.co.uk/theory/theory--decision-making-stakeholders--132.php Bryman, A. & Bell, E. 2007, 'Ethics in business research', Business research methods, Oxford University Press, pp. 126-150, viewed 17 January 2009, http://books.google.com/booksid=FRZ_HSkldV0C&dq=Bryman+Bell+business+research+methods&printsec=frontcover&source=bl&ots=BjQb5abMHW&sig=2SKcCwJPFFr9LR6Ms2-4xo0N3ZY&hl=en&sa=X&oi=book_result&resnum=6&ct=result#PPR5,M1 Gough-Yates, A. 2003, Understanding women's magazines: Publishing, markets and readerships, Routledge. Icology n.d., Breakdown of costs, viewed 18 January 2009, http://www.icology.co.uk/cost%20of%20research.html 'Marketing Environment' 2004, Marketing management, ICFAI Center for Management Research, Hyderabad, India, pp.33-49. Marshall n.d., The marketing environment, viewed 17 January 2009, http://72.14.235.132/searchq=cache:oGHaMpOfXw8J:www.qc-econ-bba.org/instructors/Marshall24/BUS243/Chapter3.ppt+suppliers+marketing+environment&hl=en&ct=clnk&cd=1 Mintel International Group Ltd. 2008, Women's magazines - UK, viewed 16 January 2009, http://www.marketresearch.com/product/display.aspproductid=2068947&xs=r&SID=78546497-436878880-514111585&curr=USD 'PEST Analysis' n.d., viewed 17 January 2009, www.researchandmarkets.com/feats/download_sample.aspreport_id=615180&file_name=PEST%20Analysis&file_ext=pdf 'Survey research' 2005, Business research methods, The Institute of Chartered Financial Analysts of India, Hyderabad, India, pp.96-115. 'Understanding consumer behavior' 2004, Marketing Management, ICFAI Center for Management Research, Hyderabad, India, pp.65-77. Read More
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