Marketing strategy for launching a new local newspaper publication

¶ … Marketing Manager's Role

Marketing Plan

Over the last several years, the newspaper and magazine publishing industry has been turned upside down. Part of the reason for this, is because the Internet is creating an alternative medium that providing readers with free information. As a result, a host of different newspapers and magazines have been struggling with declining subscriptions. A good example of this can be seen with the continued implosion in the total number of newspaper subscribers nationwide. According to recent statistics provided by the Audit Bureau of Circulations, they found that newspaper subscriptions were down 8.7% in the first six months of 2010. While Sunday circulation, was down by 6.5% during the same time. This follows declines of: 10.6% and 7.5/% (in daily as well as Sunday subscriptions) for the same period in 2009. (Vanacore 2010) What this shows, is that the newspaper industry is undergoing a tremendous transformation. As a result, those organizations that are creating unique business models are able to evolve with the changes that are taking place. In case of the new publication that is being launched (IPPY), there needs to be more of an emphasis on how the marketing strategy will address these issues. To fully understand how to achieve this objective requires: examining the strategic / operational marketing plans, identifying three consumers / two organizational segments for the new publication, looking at different ways to improve the product, examining how it will be accessible to consumers, understanding the marketing mix, providing recommendations for pricing, examining promotional / communications activity for the next two years and understanding how marketing efforts should be different between the various segments of readers. Together, these different elements will provide the greatest insights, as to how IPPY can be able to make a successful transformation as a digital publication.

The roles of both strategic and operational marketing plans, within the context of the organization's objectives and the broader marketing environment.

In order for IPPY to be at the forefront of the publishing industry, requires that they use a strategy that will embrace new ideas that are relevant in the future. This means that the publication must avoid the common challenges that will often occur at most news organizations. What happens is many of the editors and writers are focused on creating content that is considered to be newsworthy. As they are concentrating on covering those stories and events that are most relevant to their readers, then publishing them in the traditional print or online subscription-based formats. In the past this model has worked well, as most individuals would pay the various fees to read the latest news. However, the evolution of the internet has meant that many publications are ignoring the changes that are taking place, as many websites are offering free news related content. This is problematic, because it has meant that many news organizations are caught trying, to adapt to these changes when they are: seeing an implosion in circulation and readers. As a result, they are having trouble adapting to these shifts that are occurring, which is causing many publications to face the possibility of bankruptcy. (Antony 2010)

To avoid these kinds of challenges requires taking into account both: the operational and strategic marketing plans of the publication. Where, IPPY will need to focus on reaching out to the readers through traditional print and online mediums. This means that the operations of the organization (to include: writing and publishing) must take into account the type of content that readers are looking for and it must provide a brief summary of the information (in an entertaining format). Inside the different stories that are being produced, this part of the organization, would ensure that all content is optimized for the search engines and is using phrases / keywords that will catch the reader's attention. As taking this kind of focus, will ensure that the IPPY is able to: produce content that will be widely read and can easily be found in both the print as well as online media. (Woll 2006)

Inside the strategic marketing plan, an emphasis must be placed on reaching out to print and online readers. This means that both traditional forms of advertising (such as direct mail) must be used in conjunction with various online initiatives (such as the pay per click marketing and social networking). In this case, the idea is to use both forms of the publication, to increase the overall bottom line as much as possible. At which point, IPPY can be able to reach out to all of the different demographics of readers. (Woll 2006)

Identify at least three consumer and two organizational segments which you recommend IPPY should target with its new publication.

Three consumer segments that IPPY could reach out include: minorities, individuals under the age of 35 and the 35 to 65-year-old demographics. Even though a number of different print publications have continued to see a decrease in the amount of readers, many minority-based publications are seeing circulation remain fairly strong. A good example of this can be seen with Hispanic-based newspapers and magazines. According to Alloy Access & Consulting Service, they found that with these kinds of newspapers / magazines, reader loyalty is as high as 57%. This is despite the sharp increase in the number of Hispanic related content and news providers online. What this shows, is that IPPY could be able to see to stable circulation rates among minority readers.

At the same time, there must be an emphasis on two different age demographics. As far as the under 35-year-old age group is concerned, this demographic of the population reads the majority of the news online (in comparison with the traditional print version). At the same time, the 35 to 65-year-old demographic is turning to the internet to keep up with the latest news. Evidence of this can be seen with the total number of people that are reading the news online, as this is accounting for 72% of these two age groups. (Teens Prefer Reading News Online 2010) The below table illustrates the different breaks downs of the population that are using the internet for obtaining news related information.

Total Amount of the Population Using the Internet for News Related Purposes

Age Group

Percentage Using the Internet for Reading News

12-17

93%

18-29

93%

30 -- 49

81%

50 -- 64

70%

65 and Over

35%

(Teens Prefer Reading News Online 2010)

What this shows, is that a comprehensive strategy must be able to identify those groups that would be most inclined to read the publication. As a result, an emphasis must be placed on: minorities, the under 35-year-old age group and the 35 to 65-year-old demographic. This will ensure that IPPY is reaching out to its intended group of readers.

As far as organizational segments are concerned, IPPY would focus on two areas: issues that are important to minorities and news that is targeted to the two different age groups mentioned above. Where, there will be an emphasis on content and stories that are related to these segments. This would be accomplished by providing unique stories and content that will address specific interests. Once this takes place, it will ensure that IPPY is able to reach out a unique audience, while addressing specific segments and topics that are of most interest to them.

What facilities and features would add support to improve the product it offers to these segments?

To improve the appeal of IPPY, a comprehensive strategy will be required that provides these readers with the content that they find most interesting. This means that the editors must constantly pay attention to the most popular tends through: various social networking sites and chat rooms. At the same time, they must be watchful for those stories that are receiving the largest number of page views. This is important, because the print and online versions of the publication; will be able to provide those unique stories that are most interesting to the target audience. (Woodward 2006)

At the same time, a strategy must be utilized that will create a buzz around the publication. One way that this can be accomplished, is through strategically partnering with various news organizations, who could help to introduce IPPY to their readers. This will increase circulation, by exposing the publication to a larger audience. You could also offer select content for free, to introduce and create a following for IPPY. Where, select amounts of content will be offered for free to the general public. You would then, provide a certain amount, as a part of the overall subscription. When you step back and analyze this approach, it is clear that this will help to improve the product, by discussing those stories that are most important to the target audience. The free give away of select amounts of content will help to create a following of loyal readers, as a certain number will regularly read articles that are published by IPPY. While the partnering with established publications, will help to address their content needs and will expose the IPPY to a larger demographic of readers. At which point, the strategy will be more focused and can effectively reach out to the targeted demographic, improving the brand image and the supporting the product. (Woodward 2006)

How can the Organization ensure it is "accessible" to would-be customers, especially by the use of electronic means? (This includes accessing online etc.).

To ensure that the organization is accessible to would be customers' means, that the website must be continually updated (several times a day). At the same time, it needs provide specific content that would entice someone into purchasing an online subscription. This means that there would have to be balance between: the kind of stories that are offered for free and the ones that are subscription based. A possible strategy that could be implemented is to offer a select amount of high profile stories for free. And then, have the audience read the rest of the story through their online subscription. This would provide potential customers with enough of the story to make them interested. At which point, the odds are high that they will purchase a subscription. To help increase the overall profits, a mix of sponsors could purchase space on the website. The company could also use various affiliate marketing programs, to offer their readers specials and to target specific products to the audience. This would ensure that IPPY is at the forefront of online publishing, by providing enough of product mix between free and subscription-based content to remain competitive. (Woodward 2006)

As far as the traditional print version is concerned, the publication would have to market to specific communities where circulation would more than likely remain high. To do this, you could examine the overall circulation rate in the area with similar publications. This will provide information, as to which communities should most effectively be targeted. At which point, you would offer a certain number of issues available to the public for free. In this case the idea is to: create a following among this audience and help to improve the image of the brand. (Bakker 2007)

What are the implications of "place" for the publication in the marketing mix?

The overall location of the publication will play a major role in determining the strength of subscribership within a particular area. This is because there could be specific magazines and newspapers that will reach out to certain demographics of the local audience. This could have an adverse effect on IPPY's marketing strategy, as this will reduce circulation. However, the use of: the internet, providing specific local content and offering a number of stories for free should help to address this issue. When you step back and analyze the implications, it is clear that the specific local publications could be a threat to IPPY's circulation in a particular region. That being said, if IPPY can offer a specific local content and a number of free items; they could be able to mitigate these effects in certain areas. At which point, their circulation could stabilize and become increasingly competitive over time. (Williams 2004)

Make recommendations for a pricing strategy -- bearing in mind different segments

The pricing strategy that should be utilized is one that will take into account: the competition and looking at ways to add value. The overall amount of competition will play an important part in determining what the price will be. Where, consumers will compare the cover and subscription price of IPPY with other publications. This is important, because the price must be established at a level that is lower, than competing magazines and newspapers. The idea is to use the lower price, to entice consumers to purchase IPPY, in comparison with similar publications that they would have to choose from. (Ruth 2010)

Looking at ways to add value is when, you are seeing how IPPY can offer more in comparison with other publications. This could include: providing readers with specific ideas and insights about certain topics that are of interest to the audience. At the same time, the publication could sponsor numerous charity related events, to create favorable perceptions of the brand. This will help to give the publication, a way of redefining itself in a unique way, creating added amounts of value. Where, the publication can be able to target and reach out to unique demographics of readers. (Ruth 2010)

Suggest appropriate promotional and communications activity for the forthcoming 2 years.

To effectively promote IPPY over the next two years requires using strategies that will work on and offline. To be successful offline, a certain number of free issues could be given away to the target audience. This would take place in areas, where the circulation was high for competing publications. The idea is to introduce, IPPY to an audience that more than likely will be interested in the content that is being provided. (Kurtz 2009)