Professional Documents
Culture Documents
Mindak
433
434 JO URNAL I S M QUARTERLY
Despite this, many newspapers seem to These conflicting views can lead to
be “marching to a different drummer.” management schizophrenia.
The author is well aware of the haz- 2 ) The greatest strength of the ncws-
ards and problems of generalizing about paper-that of being a unique shapcr
so widespread and heterogenous group and reflector of its local environment-
as newspapers. It is difficult to compare is often one of its potential weaknesses
marketing problems for small town in that it militates against publisher co-
“weeklies,” or “middle market” dailies, operation and exchange of informa-
or suburban and metropolitan news- tion. Some of this is breaking down on
papers. Nevertheless, collectively these the production side of the newspaper
different newspapers do constitute an in- business and the ANPA Research Insti-
dustry producing a “product” for a mar- tute has been organized to help pub-
ket which spends nearly $2 billion dol- lishers find more efficient methods of
lars per year. printing the newspaper. But according
There are many factors that could to Harold A. Schwarz, assistant circu-
contribute to this “marketing myopia.” lntion manager of the Milwaukee Jour-
nal and Milwaukee Sentinel:
1) Refusal of many publishers and
editors to consider their newspaper a Although the newspaper industry is en-
“product.” Although the newspaper gaged in extensive research activity, lit-
tle of it is concerned with character-
business depends on profit just as many istics of the newspaper’s market. The
other services do, it is one of our most Communications Research Center of
important social institutions. Publishers Michigan State University stated that
would find it hard to reconcile Thomas only 1 3 % of all newspaper research is
Jefferson’s opinion of newspapers: in the area of marketing analysis.5
. . . were it left to me to decide wheth- 3) Although the newspaper repre-
er we should have a government with- sents increasingly huge investments in
out newspapers or newspapers without capital, manpower and equipment, often
a government, I should not hesitate a the men who run them-especially the
moment to pr.efer the latter. . . . But I smaller newspapers-have had little for-
should mean that every man should re-
ceive those papers and be capable of mal management or marketing training.
reading them.3 Even the business manager who is play-
ing an increasingly important role in
with the business-like description of the newspaper management is a far cry in
newspaper found in Peterson, Jensen background and training from a brand
and Rivers:4 or product manager of a Procter and
Gamble or a General Mills.
. . . The publisher became a dealer in The situation is further complicated
both a product and service. His product
as always was a newspaper . . . his ser- by !he newspaper actually serving two
vice was giving advertisers the opportu- markets: the advertiser and the reader.
nity to reach a large . . . body of con- And so while the brand manager is sole-
sumers with their sales messages. . . . ly responsible for profit and revenue for
Both in procuring their raw materials a company, this responsibility is split
and in marketing their products, news-
paper publishers exhibit the familiar Edwin Emery, The Press and America (Engle-
behavior of monopoly and oligopoly, wood Cliffs, N. J.: Prentice-Hall, Inc., 1962). p.
167.
As buyers, they use the customary ‘Theodore Peterson, Jay W. Jensen and Wil-
pressures for keeping down costs; as liam L. Rivers, The Mass Media and Modern So-
sellers they maintain rigid advertising ciety (New York: Holt, Rinehart and Winston,
and circulation rates, discriminate by Inc., 1965). pp. 54, 67.
rate differentials, and practice block Harold A. Schwarz, “Applying Research Meth-
ods to the Solution of Circulation Problems.”
selling of space in morning and evening Address at the Journalism Institute of the Uni-
newspapers in combination. versity of Wisconsin, May 10, 1963.
Newspapers and Marketing 435
between advertising and circulation -is a profoundly “simple” but funda-
managers of newspapers. What happens mental change in business today.
when the circulation manager is un- The marketing manager learns early
sympathetic to the needs of advertising that there are many market forces over
and continues to increase circulation in which he has no control, such as social
areas which are neither desirable nor and consumer behakior, competitors’ ac-
profitable to advertisers? Or when an tivities, and economic and government
advertising manager attempts to increase influences. To these he must adapt.
linage without necessarily thinking of Hopefully he will try to anticipate these
profit maximization (which is often the changes but he realizes that in such a
case with local advertising)? dynamic world he can fail (A. C. Niel-
The reader may say that this is the sen says that as many as 8 out of 10
responsibility of the publisher or in new products fail either in test market
certain cases the general manager. But or do not survive the first two years.)
what if the publisher has had printing There will always be an Edsel! But as
or production experience primarily (as the marketing manager grows more ex-
is the case with smaller newspapers)? pert in marketing decision-making his
Or if the publisher came up through success ratio increases-and the same
the editorial ranks with little business company can bring out a Mustang seven
background and prides himself on not years later!
knowing anything about such “practi- What characteristics distinguish a
cal” considerations as record keeping, genuine2y marketing oriented company?
circulation, transportation, etc.? (As is We say genuinely because the concept
the case often with larger newspapers). has become so fashionable in the last
The newspaper business seems to be few years that many companies pay lip
emerging from what the Clark-Fisher service to marketing, but continue to d o
hypothesisfi would suggest is the second- business “at the same old stand.”
ary level of economic development cen- 1 ) Marketing should be at the begin-
tering upon mass production and at- ning rather than the end of the produc-
tempting to minimize unit costs to a tion line. The company adopts a can-
tertiary period, where more considera- sumer point of view. By this is not
tion is allocated to optiniurn scales for meant giving the customer only what
delivering services and where there is she wants-often the customer does not
need for more coordination, standardi- really know, or is inarticulate or unim-
zation of procedures and specialization aginative or contradictory. It does mean
of talents. One of the talents which being sensitive to the changes in socie-
needs injecting is marketing Orientation. ty, to customers’ needs and wants, and
What is this marketing orientation? taking cues from the buyer so that the
It is basically the frame of reference product or service is a consequence of
with which a company reacts and adapts the marketing effort.
to its environment when it produces
2 ) Decisions and planning are based
products and services. It is more than
on facts and research. Again this does
a business function representing all of
not mean that creative judgment and
the processes between production and
imagination are eliminated but knowl-
consumption of a good. Truly market-
edgeable managers do insist on some
ing oriented companies focus on meet-
ing the needs of the consumer, not the means of “feedback” or research to lo-
seller. This change in attitude--from
cate problems and opportunities, to ex-
producer-oriented to consumer-oriented periment with different possible solu-
tions and to measure or test how effect-
‘Colin Clark, The Condifions of Economic ive these solutions might be.
Progress, 3rd Ed. (London: MacMillan and Com-
pany, Ltd., 1957). 3 ) Someone is responsible for over-
436 JOURNALISM QUARTERLY
all planning and coordinating of the companies some 20 years ago or before
factors that go into the marketing mix. the marketing concept came into effect.
These factors, according to Borden,’ At that time sales managers were told,
encompass product planning, pricing, using Ted Levitt’s words: “You get rid
branding, personal selling, channels of of it-we’ll worry about the profits!” A
distribution, advertising, promotions, great deal of emphasis was put on sales
packaging, display, servicing, physical promotion, gimmickry, the seven “han-
handling, fact finding and analysis. The dy-dandy” rules for clinching a sale,
marketing manager would formulate etc. etc. Volume of sales often became
different mixes depending on the re- an end in itself rather than such con-
sources at firm’s disposal and how he siderations as efficiency and profit.
feels the firm can best respond to the Often there was little coordination be-
external market forces. tween the production and the advertis-
ing and the sales departments.
Now how would newspapers rate on Eventually this kind of sales man-
these criteria of marketing orientation? ager gave way to the marketing man-
l o make this analysis more realistic let ager or product manager who would:
us confine our attention to one kind of
“market”-circulation-and one kind a) furnish an intelligence center on all
of newspaper-the typical metropolitan aspects of the product line, includ-
daily. ing technical information, market
situations;
The circulation “market” was chosen b) create ideas for product improve-
purposely because too often it is over- ment, new product development and
looked as a potential revenue and profit promotion;
contributor. Or put in another way, if c) advise top management on market-
the circulation department could be ing aspects of product during its
made more productive and costs re- implementation through research
duced these could be passed on in form and development:
d ) prepare advertising and marketing
of profits. As John R. Staley said:
concepts; devise product strategy
You can’t cut prices, labor or mate- and goals;
rial, the only fat left in this business is e) stimulate interest in and support for
physical distribution.* product line among salesmen-dis-
tributors;
As products become more standard- f ) prepare sales forecasts; provide lo-
ized and research and development gistic guidance for production-dis-
more commonplace for all competitors, tribution;
a highly responsive, reliable distribution g) assume responsibility for strategy,
system actually can become an import- campaigns, profit.9
ant marketing tool. I n an increasing The circulation manager of a news-
cost industry, such as the newspaper, an paper has evolved considerably from his
efficiently run circulation department former preoccupation with the trans-
might provide margin for profit. portation function of mailing, address-
ing and delivering newspapers to the
So let us apply the marketing-oriented present state of knowing how to moti-
criteria to the circulation department. vate carrier boys, route men and dis-
1) What about marketing being at Neil Borden, “Concept of the Marketing Mix,”
the beginning and not a t the end of the Journal of Advertising Research, June 1964, pp.
2-1.
production line? What about consumer 8 John R. Staley. “19 ways to save time and
orientation? money in distribution.” Business Munagemenf,
To a great extent many of the circu- Vol. 26 (Sept. 1964), p. 43-46.
lation managers of papers today are QDavid J. Luck and Theodore Novak, “Prod-
uct Management-Vision Unfulfilled,” Hurvurd
given the role of sales managers for Busfness Revfew, May-June 1965, pp. 143-S4.
Newspapers and Marketing 43 7
tributors, as well as being promotion advertiser. As a circulation manager he
man, trained accountant, engineer and asks:
mechanic. How do we stand at the beginning of
But although he is closest to readers this period of modernization? What
in understanding their wants and needs, about our delivery techniques? Are we
he is usually powerless to communicate doing anything to improve efficiency
these to management. He may even find and provide better service at lower cost?
What about our sales techniques? Are
himself delivering copies of newspapers we using the same scatter-gun methods
to areas when delivery may be actually that American newspapers have used
unprofitable. It is inconceivable that for the last 25 years? What about our
circulation managers can become mar- price structure? Are we charging a fair
keting-oriented without some voice in price for our product-a price that re-
product development. flects to some extent, the cost of deliv-
Note this is not to say that circula- ering the paper to the customer? Or are
we still playing a numbers game, cut-
tion considerations would dictate edi- ting our rates and charging less for pa-
torial policy. This would make for eco- pers shipped outside primary delivery
nomic suicide. All parties concerned- areas? How many of us have asked our-
editorial, advertising and circulation- selves if we can afford the customers we
are looking for the best, most viable have? Are we incurring needless ex-
and distinctive product. But no one pense for little sales gain in an effort to
group has a monopoly on ideas or sug- distribute papers where we have no logi-
gestions. Unless there is more interac- cal business circulation?lO
tion, it is hard to see how the circula- Ray Gilliland, former president of the
tion department can become more mar- International Circulation Managers As-
keting oriented and in turn how the sociation, has this to say about research:
newspaper itself can be more market- If we can sell our publishers on
ing oriented. spending some real money in the next
2) What about basing decisions and few years on reader and circulation re-
planning on facts and research? search, the pay-off can be tremendous.
If we could just save one-third of a cent
Here too often the circulation man- per day by increasing the efficiency of
ager finds himself operating in a re- our departments it would increase the
search vacuum. He needs some feed- newspaper industry’s profits by $60 mil-
back mechanism which will alert him to lion per year.11
opportunities and problems surrounding Research could be, and by certain
him brought about by changes in com- leading newspapers is, profitable if ap-
petition, area makeup, emergence of plied to various components of the mar-
new highways, suburbs, etc. He needs keting mix:
some mechanism for quality control to
see if he is operating as efficiently and The product. For many newspapers,
productively as possible. He needs somc the pattern of success has been evolu-
means of experimenting or testing new tionary. They “just gowed”-getting
techniques preferably before having to larger, thicker, adding more depart-
introduce them on a wholesale basis. In ments and features, and in effect trying
short, he needs research. But as Harold to be all things to all people. It well
Schwarz remarks, most of the research might be that in a non-competitive situ-
conducted for newspapers is either pro- ation in which many large metropolitan
duction oriented or primarily for the newspapers find themselves, this is the
proper product to produce. But in light
‘OSchwarz, op. cit.
of increased inter-rnedia competition
’*Ray Gilliland, “Thinking Out Loud.” Ad- from radio, television and magazines,
dress to Central States Circulation Managers Con-
ference, March 22, 1964. and intru-media competition (suburban
43 8 JOURNALISM QUARTERLY
have more information and data on his noted their implications for each
product, his package, his market, his of the newspapers;
channels o f distribution and his promo- field research-a group which
tional activities. would do field surveys, and tests
3 ) What about giving someone over- for newspapers and accounts;
all responsibility f o r the marketing mix? advertising services-supervised
all trade advertising so that it had
It is probably the lack of this charac- unity and a common “image”;
teristic which keeps the circulation de- external relations - responsible
partment (and for that matter also the for public relations activities with
advertising department) from becoming advertising agencies, vendors as
marketing oriented. Very little can be well as advertisers;
done if the principal decision maker- media interpretation unit-ana-
be he publisher, general manager or lyzed and interpreted media stud-
business manager-is not interested in ies, both Thomson and competi-
marketing. tive, for presentations;
Fortunately some of the leading research presentation-supervised
American newspapers are aware of this and directed the presentation of
need and are attempting to re-tool either data via slide, film or print.
by introducing new personnel who are A marketing manager was appointed
marketing oriented or by setting up for each of the regional newspapers.
marketing services which might aid the His function and authority would de-
present staff. pend a great deal on the capability of
the local managing director (the British
One of the most promising develop- term for our publisher). If the man-
ments along this line is being made in aging director was quite business and
the United Kingdom by the Thomson marketing oriented, the marketing man-
newspapers. The author was privileged ager would serve more as an aide and
to serve as a marketing consultant with consultant; if the MD were not, the
the Thomson newspapers where he had marketing manager would frequently
an opportunity to observe developments make most of the marketing decisions
first hand. for the advertising, circulation and,
Faced with a problem of a hetero- sometimes, the production departments.
genous group of daily and weekly news- The marketing managers in the re-
papers throughout the United Kingdom gional newspapers, as well as the head
varying greatly in profitability, size and of the marketing group in London,
growth potential, Lord Thomson of would often come from industry or
Fleet hired Harry Henry, an advertis- from advertising agencies and get train-
ing agency research man with little ing in the newspaper business, or from
newspaper experience but with a wealth the circulation or advertising depart-
of advertising and marketing experi- ments and would be given more mar-
ence. Harry Henry, in turn, set up a keting training.
marketing division in London (see Fig- There were, and still are, many prob-
ure 1) to service the various regional lems in introducing marketing in the
newspapers. This marketing division Thomson organization (as there will be
consisted of an account executive re- in all newspapers at the start).
sponsible for regional newspapers plus 1) Many of the editorial staff were
a number of marketing services: distrustful or wary about marketing.
Would it make more demands on what
a) economic and market intelligence went into the newspaper? Would edi-
-analyzed changes and develop- torial integrity be jeopardized?
ments in various markets and 2) The marketing men were essen-
Newspapers and Marketing 441
FIGURE 1
Dlagram of the Marketing Division of Thomson Newspapers, London
(Names of Individuals as of Summer 1964)
tially advisers and counsellors. Few had ways the problem of dealing with shop
direct control or were responsible for men and unions. It is one thing to sug-
profit and revenue. This authority with- gest a new technique for increasing ef-
out responsibility often made opera- ficiency (e.g., using a computer for
tional plans difficult to implement. marketing data); it is quite another to
3 ) Strangely enough, the advertising get some of the unions to permit this
department often did not work as co- change.
operatively as possible with the market- Nevertheless, marketing orientation
ing representatives. Some felt that mar- does make sense if it is given time and
keting would replace advertising or that management support.
the marketing men were some sort of This article was not intended to be a
combined “efficiency expert and man- jeremiad. Students of mass communi-
agement spy.” cation are fully aware of the different
4) Lastly, of course, there was al- roles that the various media play. They
442 JOURNALISM QUARTERLY
have noted the unnatural fears of media labor. John Diebold underlined this
in the past every time some new me- problem when he said:
dium came along: the predictions about I have never seen an industry that is
the demise of the book industry when going to be more completely changed in
magazines came on the scene, or the the next decade as a result of automa-
destruction of the movie industry or tion--or one which realizes it less.13
radio when television came along, or But it is the contention of this author
even those today who refer to the news- that the challenge of marketing will be
paper as a “dying medium.” History even more crucial. Prof. Fritz Machlup
has proved most of these gloomy prog- estimated the “knowledge industry” in
nosticators wrong IF (and this is a big the United States today to be worth
if) the media reacted intelligently and some $135 billion or nearly 30% of
quickly to their changing environment. total national effort. Will newspapers
It may well be that the future of get their proper “market share”?
newspapers depends on how well they 1.x John Diebold, address to American Society of
solve the problems of production and Newspaper Editors, April 1963.