Mtv Marketing Strategy Analysis

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  • Topic: MTV, MTV Networks, Viacom
  • Pages : 16 (4833 words )
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  • Published : September 27, 2012
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On September 29, 1981, MTV had been in operation for two months, with twenty advertisers and 30% of available commercial time. At this time, the company was owned and operated by the Warner Amex Satellite Entertainment Company.[1] “Youth will be served,” this statement illustrates the foundations on which MTV was established. The company had already been serving the youths of the nation with “Nickelodeon,” hence MTV was created to target the “bigger kids,” the ones with enough discretionary income representing an attractive segment to marketers and advertisers.[2] In December of 1985, Warner announced that it would relinquish MTV, and that the company would become a wholly owned subsidiary of Viacom. At the time of the deal, Viacom already owned two- thirds of MTV’s common shares. The change of ownership served to increase the value of MTV by 100%.[3] The company is currently owned and operated by Viacom almost twenty years later. The vision for MTV is still catered toward the youth market, which is larger and more powerful than had ever been before, and most importantly, more profitable.

These types of strategies are used to enable managers to determine which markets to target and how to maximize profits realized from these markets. The three most common marketing strategies are mass market, niche-market and growth market.[4]

The primary objective of the mass-market strategy is to capture sufficient volume to gain economies of scale and a cost advantage.[5] There are two approaches to this strategy. The second approach is called differentiated marketing. This involves designing separate products and marketing programs for differing segments.[6]

MTV recently launched MTV Interactive, an Internet only music company to include music super-brands vh1.com, mtv.com and sonicnet.com. The music giant formed this company because it includes the three top music sites on the Internet, targeted towards unique segments. This gives fans a more “personalized music experience,” while building a business that can support an exponential number of music brands.[7] This strategy enables the company to target several different markets with one campaign.

The niche-market strategy involves serving one or more segments that may not be large, but consist of a substantial number of customers seeking specialized benefits from a product or service. This strategy is designed to avoid direct competition with larger firms that are targeting bigger segments. [8]

MTV: The Game is a new program that will allow music buffs to test their knowledge on music, MTV history, music videos and general lifestyle questions. The game has been released through a joint venture with Cardinal Industries and includes 1,000 trivia questions with five levels of difficulty play.[9] This strategy targets a segment of the market seeking specialized services. Avid music fans can appreciate the quality of entertainment provided by this service. The MTV Game can increase profits as well as product usage by offering a unique source of entertainment to a growing market segment.

Growth market strategies involve targeting one or more segments experiencing rapid growth. This strategy is often utilized by smaller companies to avoid direct competition with larger firms, while building volume and share for the future.[10]

MTV launched a joint campaign with Calvin Klein Jeans to form an interactive micro-site. The two decided to offer this service for a second year due its success in 1999.[11] The collaboration is geared towards market segments interested in music super stars and beautiful people. Music and fashion are two of the greatest past times for domestic residents, combining them enable the two companies to offer a unique product to broad market segments. The CKJ Network on MTV provides users with the opportunity to learn more about artists featured in the Spring 2000 cK Calvin Klein advertising campaign. The site also includes...
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