Academic journal article Asian Social Science

Marketing Strategy of Pay Channels

Academic journal article Asian Social Science

Marketing Strategy of Pay Channels

Article excerpt

Abstract

Pay Channels not only need to improve the quality of their content, but also need to focus on marketing strategy. To develop Pay Channels in China, we not only need to improve the content of the TV programs, but also need to focus on the marketing strategy. So far, we have two main approaches of marketing in China. One is being operated by integration platform; the other is by the Channel itself. Pay channels are not developed so well in China. In this paper, we are going to discuss on the existing problems of pay channels in China and try to find out the effective ways to carry out marketing strategy of pay channels. To improve the situation of pay channels in China, we might take the following measures: 1) Pursue different kinds of sales approach. 2) Provide Free Preview to Expand the Scope of Publicity. 3) Lower charging fee. 4) Establish a perfect customer service system.

Keywords: pay channels, marketing strategy, consumer-centered

1. Introduction

Pay Channels not only need to improve the quality of their content, but also need to focus on marketing strategy. So far, there are two main ways of marketing in China. One is being operated by integration platform; the other is by the Channel itself. The integration platform regards the platforms which have been integrated as a whole, with unified package, unified image, unified publicity and unified selling. The advantage of integration platform is that it can reduce the investment in operating and also lower the admission fee, while the disadvantage of it is that it will lose the initiative and the flexibility, besides, it will have to pay for the agency fee. At the beginning of the promotion, it is one disaster after another when the poor Channels have to pay such a great amount of money for the admission fee. However, it is more personalizing that the Channel does the promotion by itself. The advantage of promotion by itself is that the channel has initiative in marketing, and it has more flexibility in choosing network operating institute. Besides, the channel doesn't need to pay for the expensive agency fee. In 2003, the largest part of total revenue was spent in program, which occupied 57% of the operating cost; next is marketing expenditure, which is 14.3% of the operating cost; The cost from management fee of the subscribers came third, which is 12%. These three main expenditures are the keys to the success of pay TV, from which we can see the importance of marketing. So, we should put high value on marketing if we want to develop pay channels in China.

It is of great important to formulate a flexible marketing strategy, set about marketing, attract more subscribers for pay channel and attain a relatively steady user base by consistently providing qualified services. Meanwhile, we should consistently attract more new users and finally set up the operation pattern which is accepted by the market. Only in this way can we change the audience's fixed ideas of watching TV without pay and develop a habit of watching pay channels. The so-called marketing of pay channels is composed of the combining of the video and audio, package, binding and service design, pricing, and planning and implement for promotion and distribution. The purpose of marketing is to achieve the exchange of personal goal and organization goal. To analyze the marketing strategy of pay channels, we should analyze the relative theory of marketing first.

2. Relevant Theory of Marketing

The marketing theory in America has undergone a conversion form 4P marketing theory to 4C marketing theory. The production and operation of the branded television programs can use this conversion for reference. The so-called 4P refers to product, place, price and promotion. 4C refers to consumer, convenience, cost and communication. The former emphasizes the features of the product, while the latter focuses on discovering and catering for the need of costumers.

2.1 The Marketing Theory of 4Ps

The Marketing Theory of 4Ps was put forward in 1960s, with the establishment of Marketing Mix Theory. …

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