The Market Segmentation of the Uk Newspaper Industry1

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Contents
Executive Summary………………………………………………………………………………………………………...4 Introduction………………………………………….……………………………………………...4 Segmentation of newspaper market in the UK………………………………...…….…5 1. Profile Segmentation Criteria………………………………………………………………………….….5 2. Behavioral Criteria………………………………………………………………………………………….….5 3. Psychographic Segmentation Criteria…………………………………………………………….…..6 The Times……………………………………………………………………………………….…….6 Recommendation…………………………………………………………………….…………...7 Appendix……………………………………………………………………………………………... 8 References…………………………………………………………………………………………………………………….….….9

Executive Summary
With the development of digital technology, people are able to choose varies ways to obtain information they need and can easily get used to one particular way of news and information acquisition, which is a sever test to traditional newspaper industry. The main purpose of this report is to discuss the current circumstance of UK newspaper industry and use the market segmentation theory to find out some feasible ways by which the newspaper brands (take Times as an example) could survive in the competitive market.

Introduction
Turning into the 21st century, the society has experienced an information overload era. For the newspaper industry, the amount of newspaper categories have sharply increased, followed by the change of diversity and complication of the readers’ demand which contributes to a new newspaper market type that has been characterized by differentiation and diffusion. In this circumstance, the newspaper managers are supposed to implement the target marketing strategy for the differential readers’ needs. In the UK, there are totally 1350 kinds of newspaper and 7000 kinds of magazines and weeklies. In addition, the per capita sales of newspapers in the UK are more than any other developed countries (ABC net sales 2000-2009). However, according to a report from the Organization for Economic Co-operation and Development (OECD), the UK’s part has become one of the worst newspaper industries in the world. The UK newspaper publishing market declined by 21% from 2007 to 2009(Adam Hooker, 2010). In fact, the UK newspaper could survive even flourish as long as the newspaper companies reasonably segment and target the market as well as find the correct positioning. The figure below shows that the average circulations for January of these 10 years. All the figures originate in the Audit Bureau of Circulations (ABC).

As one of the most time-honored newspapers in the UK, The Times has a distinguished reputation over the world. However, the figure illustrates that although it is the best-selling serious-minded newspaper over the last 10 years, The Times is still 6 times less than the champion—The Sun. The top 6 of the circulation are all the tabloids, to a certain extend, which reflects that the target readers are mainly composed by people who give the priority to the relatively unserious news and information. Actually, no matter who is the leader of the circulation ranking list, it is not a big deal. Everyone who wants to survive in the complex newspaper market in the UK must have a clear perspective about the market regulation and have the ability to divide the market into specific parts which are related to their owns development.

Segmentation of Newspaper Market in the UK
We can define it as: according to some certain classifications, newspaper market segmentation is a process in which the newspaper industry divides the whole market into some separate sub-markets of readers with the different demands or desire of information acquisition. In other words, the process of segmenting the newspaper market is equivalent to segmenting the readers. In newspaper industry, the readers are equal as consumers and buyers of other trade markets. To sum up, there are three main criteria. They are profile criteria, behavioral criteria and psychographic criteria. (David Jobber, 2004) 1. Profile Segmentation Criteria...
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