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2014-06-22

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JOURNALISM
UDC 070
N.N. Kalaytanova
Moscow state university of M.V. Lomonosov
Moscow, Russia
nkalaytanova@gmail.com
DIVERSIFICATION AND EXPANSION OF THE MAGAZINE’S BRAND
[Диверсификация и расширение журнального бренда]
The results of marketing are not always interpreted in financial terms, but its activity is focused on the achievement of certain performance commercially successful enterprises. One business practices, attracting new sources of
profit, is the format of "brand extension". The articles considers aspects of this trend and affordable for the magazine
form its implementation. Today publishers in addition to traditional marketing should take into account changing market conditions and add to the business model of the product are the components that will retain and attract an audience,
expanding formats brand presence and as a result, funding sources.
Key words: diversification of media, brand extension, new forms of modern media.
Formation of the market of specialized publications
At the turn of XIX-XX centuries. popular editions of common interests is replaced by
segmentation - arrival on the market of specialized media, specializing in various subjects.
Thematic niche magazines formed under the influence of in-depth study of consumer behavior that
is associated with the development of mass production: "In addressing a narrower group of readers,
magazines could change the advertising policy, attracting advertisers clearly defined target
audience" [1, p.147]. Mediaissledovatel Vartanova notes that the success of the first women's
publications became the basis for the diversification of the magazine industry and its transformation
into a "very selective in terms of content and advertising media" [1]. Content orientation for the
benefit of the target group has allowed specialized journals become more effective advertising
channel, provides access to the consumer's attention, certain characteristics and interests. Publishers
of specialized journals late XIX - early XX century. replaced the model of income from sale of
circulation (through its retail sale or subscription) on a business model that focuses on profits from
advertising publications [4].
Local market of specialized magazines began to take shape in parallel with the development
of the Internet in 1994 - 1996 years. Over the past 20 years have seen the integration and mutual
penetration of the publishing business and modern communication technologies. Global network
and popularization of various electronic devices to access the Internet allowed the media to learn
additional channels of content distribution. Magazine as a product has gone beyond the traditional
off-line format, its content today exists not only in printed form. The audience can select and
combine any way to consume content, which is produced under the parent brand and integrated
unified marketing and editorial concept.
Today, the 20-ies. The twenty-first century., And readers can not physically acquire an
existing instance. Now you can download the electronic version, adapted to the distribution of
different types of digital devices, or read online edition via a browser, and use the application on
your mobile phone, which is a real-time updated content. World glossy brands such as "El»
(ELLE), «Cosmopolitan» (Cosmopolitan), «Vogue» (Vogue), in recent years actively use
opportunities of the digital environment, which has become not only a new channel of
communication with the audience and sales channel content using a variety of formats (audio and
video imaging, infographics), but also a new way to generate income and tool "brand extension"
(Eng. brand extension).
The concept of diversification and expansion of the brand
We combine the concept of "diversification" (lat. Diversificatio - change, diversity) and
"brand extension" on the grounds that under the first phenomenon refers to the transition to a new
area of business specialization, and the second - the development of new opportunities through the
use of a recognizable brand. Path of growth companies including alleged "penetration of existing
companies into new areas of production" [3, p. 65], which is the rallying point of both concepts.
As a basis for such a conclusion we give the definition of concepts. Elena Vartanova says that
"diversification - the development of a new field of enterprise activity, which has no apparent
connection to the existing business areas" [7, p. 335]. In turn, the "brand extension" involves the use
of an existing trademark applicable to new or modified products; This strategy allows the new
product to take advantage of the good reputation of the goods has already won a place in the market
[9, p.139].
In the advertising market, English and American, publishing widely diversified its business
and expanded the brand from the magazine to complex projects, such as "hotlines due to the caller,
books, special offers for readers, meetings, lunches, travel and study tours, conferences, seminars
exhibitions and shows "[4, C.142].
American researcher of this issue, Edward Tauber reviewed 276 examples of brand
extensions among the 115 different types of products, and then proposed the following
classification of brand extension [10]:
1) The same products are presented in a different form (Eng. Same products in a different
form);
2) a distinctive flavor / ingredients / components in the new product (Eng. Distinctive taste /
ingridient / component in the new item);
3) Man Products (Eng. Companion products);
4) Franchise (Eng. Same customer franchise);
5) Review (Eng. Expertise);
6) Should the benefits / attributes / features (Eng. Benefit / attribute / feature owed);
7) to change the image or status (Eng. Designer image / status).
Launching a new product requires a lot of tangible and intangible investments, while the
model of brand extension allows you to cut costs and reduce financial risks due to reputational
capital and financial stability of the parent brand that can also draw attention to its co-products loyal
audience. This approach allows us to overcome the first "crack Moore" and a critical mass of
followers to further develop and strengthen the market position of the new project: If you want to
achieve success in the market of consumer goods or want to mass market took your idea, it is
impossible, unless you reach a critical mass of followers - from 15 to 18% of all types of
consumers. Business researcher Jeffrey Moore refers to this as "crossing the chasm" (Eng. Crossing
the chasm) [5].
Accumulated reputational capital is easy to lose the brand, which in expanding its capacity
misses fact control the quality of production or service delivery. [8] An example of this is the
fashion brand "Gucci» (Gucci), which is 70-80 years. 20 in. at the time of lost respectability
because of lack of control in issuing licenses - from the producers of sports clothing to toilet paper
[2]. Applicable to the media industry, this example can be considered when delegating sales
"sellingovym homes» (selling houses), whose employees are the product outside the market
participants. However, an insufficient degree of competence, remote communication with the
creators of the project or errors associated with the human factor, can harm the reputation of the
brand.
Expansion format printing brand
The first method, borrowed from magazines newspaper industry involves the use of offal in
the parent brand: the release of additional content, divided by categories (fashion, beauty, children,
wedding, etc.) and view it as an annex to the parent publication. Typically, these projects
subzhurnalnye distributed with a major release or attachment format. They may be submitted in a
separate section within the allocated numbers or special insert (for example, on different qualitative
characteristics of the paper, including using perforation). This example assumes that the chain of
the production process does not undergo substantial transformation and the basis of a standard
scheme: content is created under the control of the same editorial team, printing takes place in the
enterprise together with the number distributed application identical to the main magazine properly.
Benefits include the following:
- To provide additional income due to the expansion of advertising space;
- Minimization of publishing costs through the use of existing production facilities;
- The use of brand awareness (Eng. Brand awareness) and the company's reputation in the
market of readers and advertisers;
- Providing additional content as a bonus readers who buy a copy of the application on the
regular price of a single room;
- Additional segmentation audience editions for advertisers who are able to advertise on a
narrower range of readers, for example, women who are planning a wedding or having children.
Another example of this kind of brand extension can be reduced in the case of using a
previously published content that is interpreted in the format Collector's Edition. Examples of this
method are: jubilee issue "10 years in Russia" magazine "Ofisel» (L'Officiel), November 2007;
number "El» (ELLE) «15 years in Russia. With Love ", Spring 2011; Collector's Issue "Maxim»
(MAXIM) «All the best for 5 years (2002 - 2006)", 2007; Poster "Jubilee Room: the best materials
for the history of the magazine", April 2014. In this case, practice the principles which we have
described above: a profit by attracting advertisers at minimum costs in connection with the use of
well-functioning production chain.
The final cycle of printed products are subzhurnalnyh book. On the local market as examples
the following projects: "Rules of Life: 100 best interviews from the magazine Esquire», Russian
media history 1989 - 2011 at the magazine "Billboard", "Flaming Star" by the magazine "Maxim".
It is worth noting the following differences in the model:
- Focus on the sale of copies than than advertising revenue in connection with the specific size
and species characteristics of advertising in the book industry;
- Partial replacement of processes, which is dictated again formats - another way of visual
design, the use of non-magazine printing materials and specific production process;
- Addition of other distribution channels (retail book).
This method, firstly, can serve as an element of self-promotion, highlighting the status of the
project, the ability to interpret the accumulated glossy material in book format, as well as an
episode for PR support. Secondly, when the demand from buyers of content publisher can earn an
income from the model of "percentage of sales copy", traditionally used by book publishers.
The fourth example is based on a principle similar to the previous formats, in which the costs
of creating content pieces remain in a single edition, despite the fact that substantial product is
duplicated in the digital environment. Access to electronic content is possible with the use of
different types of devices that creates a certain variability in the way of media consumption. At
present, this format is presented in the following variants and their combinations:
- Digital versions of publications rasprostranenyaemye elektoronnyh at points of sales:
"Zinio» (Zinio), «Apple Store» (Apple Store), «Market Place» (Market Place);
- The official website of the media, which is functionally divided into a version for desktop
devices (laptops, desktops, tablets), the so-called "big" web, and the version adapted for viewing on
mobile devices (smart phones, telephones);
- The mobile application (English. Mobile application) for different operating systems: "AyO-Es» (iOS), «Android» (Android), «Vindous Background» (Windows Phone).
Due to the limited work in the study of business model, we assume the use of brand
extensions in the form of the presence of by-products in their electronic form as a source of income,
based on advertising sales. However, it should be noted separately similar to traditional media
model of generating income from the sale of the "principle of subscription" - providing access to
electronic content, or a combination of these formats in a complex sentence.
The next way to use the brand of publication in the format of joint projects with partners
specialized in their field. Partner company can represent any sector of the economy, but we note the
most common example, actively practiced in recent years - the release of co-branded credit cards
with media support from the media:
- A project of the magazine "Cosmopolitan" and "Alfa-Bank" with the use of the payment
system "Visa» (VISA), the launch of which took place in 2007 .;
- Cooperation of the magazine "El" with "Raiffeisenbank» (Raiffeisenbank), begun in 2009 .;
- Joint project "Male map", launched in 2011 with the participation of the magazine "Maxim",
a media company "GeymLend» (Gameland) and "Alfa-Bank";
- Banking "traveler card" from "Afisha-Mir" and "Moscow Credit Bank" (IBC), supported by
the payment system "MasterCard» (MasterCard), a project launched in 2010
Among the positive aspects - mutual promotion, the use of information capacity of
publication and (or) with the use of other resources mediaprodektov publishing house (like
advertising a joint map of the magazine "El" and "Raiffeisenbank" in the journals "Hurst Shkulev
Media": "Psychology", "StarHit "et al.), as well as support services both marketing structures and
the relative distribution of the cost of a set of actions.
Venture partner is able to increase its customer base. For the bank, this may mean increase in
the percentage of transactions by using special cards from partner companies. In addition, the media
shares its positioning within the project that attracts the loyal audience that trusts publication and
broadcast partner for this emotion.
The magazine, in turn, imeeet project involving the audience in the BTL-action outside its
profiling. In addition, it is a way of attracting revenue, the conditions and the amount of which
depends on individual arrangements with a partner.
Partner can be any commercial enterprise [6] (or government agencies), in cooperation with
the distribution of roles which may occur in the following parameters:
- Lighting project on the side of the partner media (direct advertising, editorial integration);
- Cross-promotional support to the distribution of financial costs;
- Mutual involvement in the project of their consumers - a new audience for both partners;
- Maintaining interest in the project at the level of the participants using the available tools;
- Compliance with the correct use of the parameters of the brand, according to the "guideline"
(Eng. Guideline - recommendations).
The final example of the expansion of the coffee brand can be a conceptual organization of
media events with partners on the basis of a commercial nature or barter, which helps defray the
costs (or parts of them), and also acts as a source of profit. This kind of brand extension firmly
entered the practice of media companies, and we refine this method due to the non-core financial
channel for the media. A good example in terms of the scale of commercial orientation and noted
the activities of the company "Bill-Rambler-soup", "holiday meal" magazine "Poster-Food" and
music festival "Picnic Posters", a visit which in 2013 amounted to 65,000 people (internal statistics
of the company). By organizing events can be held as outside experts or events may be held by our
own marketing departments.
These cases demonstrate the trend of brand extension development of new formats and media
complement the existing business model components that serve as sources of raising finance.
Format brand extension allows publishing to create preconditions not only for profit, but also a tool
for self-promotion (Eng. Self-promotion) and information events, which are used in order to
increase knowledge about the brand. These examples are included in the scope of the industry
leaders and media indicate a trend of transformation in a separate line of business or projects that
becomes semantically close element for use of the term diversification, which involves building
competencies and capacities in the new area.
Writer Mark Twain said: "I rarely notice a profitable opportunity before it ceases to exist."
Many companies find themselves in a situation of loss of profits due to the fear of development and
the development of new businesses, even in cases where the risk percentage is much lower
probability of success. With the development of brand new niches potential can be calculated from
the three components [3, p.68]:
1. The probability of technical completion;
2. The probability of generating income with the technical completion;
3.veroyatnost economic success in sales.
Today publishers in addition to traditional marketing should take into account changing
market conditions and add to the business model of the product are the components that will retain
and attract an audience, expanding formats brand presence and as a result, funding sources.
References
1.
2.
Vartanova E. Mediaeconomic of foreign countries. M: Aspect Press, 2003.
Drobo K. Brands in the Balance: Meeting the Challenges to Commercial Identity. M. Alpina
Bussiness Books, 2005.
3. Kotler Ph. How to Create, Win, and Dominate Markets. 5th ed. М., 2008.
4. Morrish J. Magazine editing: How to Develop and Manage a Successful Publication. 2nd ed.
M., 2008.
5. Moore G. Crossing the Chasm: Marketing and Selling Hight-Tech Products to Mainstream
Customers. М., 2013.
6. For example, food projects as Vogue Cafe, GQ Bar, TimeOut Bar.
7. Basics of Mediabusiness / editing by E. Vartanova. М., 2009.
8. Aaker D. Brand extensions: the good, the bad, the ugly. Sloan Management Review, 1990.
9. Fill C. Marketing communications: interactivity, communities, and content. – Prentice Education Limited. 5th ed, 2009.
10. Tauber E. Brand leverage: strategy for growth in a cost-controlled world. Journal of Advertising
Research.
August-September,
1988
№
24(2)
/
URL:
http://www.brandextension.org/articles/bl_jas.pdf
Литература
1. Вартанова Е. Л. Медиаэкономика зарубежных стран. М., 2003.
2. Дробо К. Секреты сильного бренда: как добиться коммерческой уникальности. М., 2005.
3. Котлер Ф. Маркетинг по Котлеру: Как создать, завоевать и удержать рынок / Пер. с
англ., 2008.
4. Морриш Дж. Издание журнала: от идеи до воплощения. М., 2008.
5. Мур Дж. А. Преодоление пропасти. Как вывести технологический продукт на массовый
рынок. М., 2013.
6. Например, заведения общественного питания: проект «ВогКафе» (VogueCafe), «ДжейКью Бар» (GQ Bar), «Таймаут Бар» (TimeOut Bar).
7. Основы медиабизнеса: Учебное пособие для студентов вузов / Под. ред. Е.Л. Вартановой. М., 2009.
8. Aaker,D. Brand extensions: the good, the bad, the ugly. Sloan Management Review, 1990.
9. Fill C. Marketing communications: interactivity, communities, and content. Prentice Education Limited. 5th ed, 2009.
10. Tauber E. Brand leverage: strategy for growth in a cost-controlled world. Journal of Advertising
Research.
August-September,
1988
№
24(2)
/
URL:
http://www.brandextension.org/articles/bl_jas.pdf
November, 14, 2014
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