Professional Documents
Culture Documents
Media Industry & Management
Media Industry & Management
And
Management
UNIT – I
Hierarchy:
A hierarchy is a system or organization in which people or groups are ranked one
above the other according to status or authority.
It is the job of the editorial department to gather and edit news, take pictures, and
design the pages. Similarly, the advertising department takes care of
advertisements placed in the paper, while the printing is undertaken by the
production department & sales & distribution of the paper is the domain of
circulation department.
Editorial Department
The role and responsibilities of the members of the editorial department depend on
its administrative structure. This in turn is determined by the number of staff
members employed. Newspapers and magazines have different structures. Since a
newspaper has to be produced every day, it calls for speedy work with more people
working it than in a magazine, which may be a weekly, fortnightly or monthly.
In publication houses which bring out a group of newspapers and magazines, the
chief editor is the one who is responsible for the editorial policy of the publishing
house. Though individual editors are free to express their opinions and adopt
policies, the chief editor has to make sure that it is broadly consistent with the
group policy. The chief editor is also the link between the management and the
editorial departments.
Editor: The editor holds the key position in a newspaper organization. He / She are
responsible for the editorial content of the newspaper, from editorials to news
reports to comics. The editor's job can be summed as setting the policy for the
paper. This editorial policy guides decisions made by all the editorial staff down
the line.
Its core elements are the focus and tone of coverage, the manner of presentation of
news, and the editorial stance on the issues of the day. The editor's influence is
exerted through those who report directly to him / her, usually the managing editor
and editorial page editor.
News editor: The news editor is in many ways next to the editor. Although the
editor has Assistant Editors working under him, the most important work in a
newspaper is done under the guidance of the News Editor. If the editor represents
the conscience of the paper, then the News Editor is its eyes and ears. The News
Editor is aware of what is happening and has to ensure coverage and deal with the
aspects of obtaining news and use of news.
Bureau chief: The bureau chief is stationed at the headquarters and leads a team of
reporters. He assigns them the events and special stories to be covered day-to-day.
It is the bureau chief's responsibility to cover the developments in his / her area. He
/ She also decided which of the scheduled events are to be covered and by whom.
Reporters: These are newsroom staff member‘s that are junior to special
correspondents but are involved in similar duties. They may be given specific beats
or may be general assignment reporters. Stringers are those who provide news to
an organization without formally being a part of the organization.
Sub-editors: The sub-editor edits the copy, gives headlines to stories, writes
captions and cutline’s for photographs and is usually the last person to read the
copy in detail. It is also the job of the sub-editor to lay out the pages.
Advertisement department
Newspapers derive their revenue from two sources – advertising and circulation.
Advertising revenue (i.e., the money paid by advertisers to place an advertisement
in a newspaper) accounts for 75-80 per cent of the total revenues of many Indian
newspapers. The newspaper’s cover price of Rs. 4 per day is the revenue from
circulation, and this accounts for just 20-25 per cent of the total revenues. A
newspaper organization cannot survive on just circulation revenue, so the
advertising revenues are crucial for its operation.
Classified ads are set in plain text with no particular design. These are arranged in
subject-wise categories and hence the name. The charges consist of fixed and
variable components. For example, a newspaper may offer first three lines of text
at, say, Rs. 300 and then charge Rs. 150 for each additional line.
However, certain advertisers prefer 'special position' for their advertisements, and
the newspapers charge extra for preferred positions. Newspapers also charge extra
for split-run service, in which alternate copies of the same paper are printed with
different advertisements of the same product.
(i) Getting the ads: Just as there is competition among newspapers for readers
(circulation), there is competition for advertising. Newspapers try their best to offer
attractive terms to advertisers, while also maximizing their revenue.
(ii) Billing and Collection: Preparation of bills and collection of payments from
advertisers is an important function of the advertising department. Payments for
classified advertisements are usually received in advance. Payments for those
released by agencies accredited to Indian Newspaper Society (INS) become due
only after 75 days. In some newspapers, billing and collection may be an integral
part of the department, while in others this may be left to the accounts department.
In either case, the advertisement department should be aware of the
creditworthiness of the clients.
Production department
The production department is concerned with transforming the creative work of the
editorial department into the finished product, namely, the newspaper. For today's
newspapers, the production quality is as important as the quality of the editorial
contents. The head of the production department for a given edition is known as
the Printer. It is mandatory to carry the Printer's name in the newspaper's imprint
line.
The major sub-divisions of production department are CTP section, Press Room
and Mail Room. In the first section, printing plates are made for each page to be
printed. The Press Room is where the ink actually meets paper on offset printing
machines. In the Mail Room, printed copies are counted, packed and dispatched to
various locations in required numbers.
Given the importance of production quality for readers as well as for advertisers,
the production department constantly monitors the registration, color reproduction,
folding and cutting of the paper to make sure they meet the paper's standards.
Apart from these day-to-day operations, the department needs to procure in
advance the required quantities of paper, inks and other material that goes into
printing, apart from maintaining the upkeep of the press.
In addition to the above, the production department needs to periodically assess the
circulation trends and decide on setting up printing centers close to the areas of
growing circulation. The need to meet growing circulation in areas outside the core
market of a newspaper sometimes leads a newspaper to enter into arrangements
with other printing establishments to print the paper on a payment basis. For
instance, this is the case with The Hindu in Uttar Pradesh and Punjab, whereas the
paper is printed in the facilities of HT Media by an arrangement.
Circulation department
Circulation means the number of copies of a newspaper that are sold and paid for.
For a mainstream newspaper, the circulation is a measure of a newspaper's success
and is largely the basis of advertisement revenue. The higher the circulation and
the larger the numbers of readers it reaches, the higher the advertisement tariff.
(i) Packing and dispatch: As the newspaper comes out of the press, arrangements
must be made to pack them for dispatch to sales agents. In packing and transport,
care has to be taken to make sure the copies reach the agent without damage or
delay. Since the main section of a newspaper and the day's supplements are printed
and packed separately, it should be seen to it that the number of copies of the two
sections dispatched to each area match.
(ii) Relationship with agents: The agents distribute the newspaper in a given area.
They are usually exclusive to a newspaper. They are the most important persons
for circulation department because they come in contact with the readers and are
aware of their likes and dislikes. They also know the position of other competing
newspapers because they are in direct touch with the readers.
(iii) Subscription: This section deals with the distribution of newspapers sent by
mail. Some subscription copies may also be distributed through agents. The
subscription section receives advance payment for a newspaper for a particular
period.
(v) Print order: The number of copies to be printed of each edition is usually
determined by the circulation department. This department prepares print order for
each edition on the basis of supply requirements of agents, hawkers, subscribers,
advertising voucher copies, complimentary copies and other requirements. This is
a time-bound operation and to a large extent establishes deadlines for other
departments.
(VI) Supply of information to RNI, ABC: It is also the job of the circulation
department to supply information on the circulation of the paper to the Registrar of
Newspapers for India (RNI) and to the Audit Bureau of Circulation (ABC).
General Manager: The general manager supervises the station's management and
operations tasks. The general manager establishes and implements station policy
and often have the final word in decisions affecting the station's programming and
production work.
News Director: The news director coordinates the station's news-gathering efforts.
The news director may be called on to write news stories, edit stories from
reporters and coordinate schedules for covering breaking news stories.
For stories with nationwide impact, the news director for the local station
coordinates efforts with the network news staff and determines how to cover the
story to show its affects on the local community.
The news director is also in charge of activating the Emergency Broadcast System
in the event of a natural disaster.
The sales manager hires and trains new sales staff, finds the best sales
opportunities for the station's programming and creates sales plans and objectives.
The sales manager works with the general manager to determine the station's
revenue needs and the best methods to meet those needs.
Production Manager: The production manager supervises each live local newscast
and assigns news stories to anchors. The tasks of the production manager include
setting the order of stories for each newscast and selecting when and where any
live remote reports occur. The production manager works in the operations booth,
alongside the director and technical staff, to ensure that the lights, camera angles
and sound cues all work together to present a professional and informative
program.
At the network level, the divisions are somewhat more complicated. Although the
major networks differ in their setups, all seem to have the departments that perform
the following functions:
DAVP has been working as a catalyst of social change and economic growth over
the years. It has been instrumental in creating awareness amongst masses on socio-
economic themes, seeking their participation in developmental activities and for
eradication of poverty and social evils.
Apex Bodies:
The objective of the Society which may be enlarged at any time as hereinafter
provided are:-
Audit Bureau of Circulations (ABC) is one of the several organizations of the same
name operating in different parts of world. ABC founded in 1948 is a voluntary
organization consisting of publishers, advertisers and advertising agencies as
members. It does pioneering work in developing audit procedures to certify the
circulation figures of publications which are members of ABC.
The main function of ABC is to evolve, lay down a standard and uniform audit
procedure by which a member publisher shall compute its Qualifying copies. The
circulation figure so arrived at is checked and verified by a firm of chartered
accountants which are empanelled by the Bureau. The Bureau issues ABC
certificates every six months to those publisher members whose circulation figures
confirm to the rules and regulations as set out by the Bureau.
Circulation figures that are checked and certified by an independent body are an
important tool and critical to the advertising business community
ABC's membership today includes 562 Dailies, 107 Weeklies and 50 magazines
plus 125 Advertising Agencies, 45 Advertisers & 22 New Agencies and
Associations connected with print media and advertising. It covers most of the
major towns in India.
An Advertiser would like to know the facts and figures before investing his money
in advertising. An Advertiser ought to know how many people buy a publication
and in which area.
The ABC gives all these vital statistics every six months. The ABC figures are not
the outcome of opinions, claims or guesswork, but they are the result of rigid, in-
depth and impartial audits of paid circulation of member publications by
independent firms of Chartered Accountants working in accordance with the rules /
procedures prescribed by the Bureau.
The Editors Guild of India is the only professional organization representing editors
across the country. It was established in 1977 just after the Emergency. It has nearly
200 members from national, regional and local newspapers, magazines and
electronic media.
The body has been at the forefront of the movement against laws and executive
action which attempts to curb the press freedom and gag the press, and it has
successfully campaigned against passing of black laws like the Defamation Bill,
POTA against journalists, Broadcast Regulatory Authority, etc, a release from the
Guild said.
It has launched its website which would serve as a guide for the action taken by the
Guild to protect freedom of media organizations and editors in the country.
Among other things, the Code of Practice for Journalists published by the Guild
would be available on the site. The aims and objectives of the Guild as given on the
site are upholding the freedom of the Press and other mass media, striving for
improvement of professional standards, safeguarding editorial independence and
taking appropriate steps to implement and further these aims and objects.
News Broadcasters Association (NBA):
The News Broadcasters Association is a private association of different current
affairs and news television broadcasters in India. It was established by
leading Indian news broadcasters in October 2008.
The association was set up to deal with ethical, operational, regulatory, technical
and legal issues affecting news and current-affairs channels. Its founding members
were:
NDTV,
Times Global Broadcasting,
TV Today Network,
TV18 Group,
Zee News,
Media Content and Communication Services,
Independent News Service, and
Global Broadcast News.
Mission:
To serve as the eyes and ears of the private news & current affairs broadcasters, to
lobby on its behalf and to act as a central point of joint action on matters of
interest.
To promote, aid, help, encourage, develop, protect and secure the interests of
the News Broadcasters in the Indian television Industry and other related
entities.
To promote awareness about the latest developments in the television
industry relating to News Broadcasting and to disseminate knowledge
amongst its members and the general public regarding such developments.
To provide for the members a place of meeting so as to enable them to work
in consensus to achieve common goals for the overall betterment of their
industry and to have a common platform/forum at which they may air their
grievances and arrive at solutions.
To promote the growth of friendly relations amongst the members and
amongst persons engaged in the production and broadcasting of the
television software and especially to encourage co-operation among the
members so as to maximize mutual benefits.
To protect all its members from persons or entities who carry on unfair
and/or unethical practices or who discredit the television industry.
No objects of the Company will be carried out without obtaining prior
approval/ NOC from the concerned authority, wherever required.
BCCC would examine complaints about television programs received from the
viewers or any other sources, including NGOs, RWAs, and Ministry of
Information & Broadcasting etc. and ensures that the programs are in conformity
with the Self Regulatory Content Guidelines.
Procedure:
A complaint must be made in writing, either in English or Hindi, and must include
the following:
Name,
age,
complete address of the complainant
Name TV Channel and specify the program
Date and time of broadcast
Short summary of the subject matter of the complaint.
All complaints so received will be put up for orders of Chairperson by the BCCC
Secretariat within three working days from the receipt of the complaint(s). If the
complaint appears prima facie vexatious, frivolous or motivated or appears
baseless, the Chairperson shall initiate no action but will direct BCCC Secretariat
to put up the same at the next meeting of BCCC to decide whether the complaint
should be processed or not. The BCCC shall direct further action to be taken.
In case of any complaints received by the BCCC for a channel which is not a
member of IBF, such complaint shall be forwarded to the Ministry of Information
& Broadcasting for appropriate action.
If the Chairperson feels that complaint appears to, prima facie, indicate a possible
violation of the Code, the Chairperson will direct BCCC Secretariat to ask the
concerned Channel to submit their views on the offending content within one
working week from the receipt of the letter from BCCC in the matter.
The reply of the Channel, in any, along with video/footage as received from
EMMC will be put up for consideration of BCCC in its next meeting. If BCCC is
not satisfied with the response of the concerned Channel, the BCCC should decide
whether the offending content has violated the Guidelines.
In case a violation is detected, BCCC shall direct the concerned Channel to modify
or withdraw such content within a week on receipt of direction from BCCC. It
shall be open to the Channel to seek a personal hearing and to BCCC to seek the
Channel’s presence at their meeting. However, this shall not be construed to grant
any further time extension but must be allowed within the same period granted by
sub section 3. If the representative of the Channel fails to appear before BCCC on
the stipulated date, the BCCC may decide the complaint ex-parte as the BCCC
may deem fit.
If the channel defies the order of the BCCC, the matter may be referred to Ministry
of Information & Broadcasting within the next 24 hours for appropriate action. If it
appears to BCCC that a motivated complaint has been made with the objective of
tarnishing the reputation and or the goodwill of the concerned Channel in the
market, the BCCC can blacklist such complainants for three years and no
complaint shall be entertained thereafter from such complainants.
IBF consists of major broadcasters with more than 250 TV Channels. IBF enjoys a
unique position as the accredited spokesman of the broadcasting industry.
IBF has played a significant role in a short span of time in protecting and
promoting the interests of its members and freedom of electronic media in the
world's largest democracy.
IBF identifies and pursues growth opportunities for its members and ensures that
the members present a strong collective voice regionally, nationally and globally.
Changes in Up-linking & Down-linking Guidelines
Based on the input received from members, IBF has submitted a proposal to the
Ministry of Information and Broadcasting requesting the Ministry to recast the
existing "Policy Guidelines for Up-linking and Down-linking of TV channels" to
reflect the fast evolving electronic media landscape in the country and facilitate
ease of doing business in India.
IBF is working closely with the Ministry to simplify entire up-linking and down
linking policy.
The TRAI Act was amended by an ordinance, effective from 24 January 2000,
establishing a Telecommunications Dispute Settlement and Appellate Tribunal
(TDSAT) to take over the adjudicatory and disputes functions from TRAI.
TDSAT was set up to adjudicate any dispute between a licensor and a licensee,
between two or more service providers, between a service provider and a group of
consumers, and to hear and dispose of appeals against any direction, decision or
order of TRAI.
UNIT – II
newspaper,
radio,
television,
films,
internet,
books,
magazines,
It follows socialism and has mixed economy. Therefore, public as well as private
sector both plays an important role in the growth of nation. Likely in the case of
media, public authorities as well as private individuals both own the media in one
or the other way. The ownership pattern changes from private to third party or
public to autonomous body.
Individual (Businessman/Industrialist) •
Partnership •
Association/Trust •
Joint Stock Company In India,
Films Private Ownership Pattern: As soon as film is completed in its shoot, the
producer contacts distributors of one territory or more distributors of different
areas so as to sell its film in the cinema halls. All rights of a film are sold to
distributors. The distributor then negotiates with the exhibitors who own chain of
theatres. Hence, private ownership of the films gets transferred to distributors.
Film Division
Central Board of Film Certification (CBFC)
National Film Archive of India
National Film Development Corporation (NFDC)
Entry routes:
Set out below, is a brief outlook of the sector restrictions for foreign investment in
the M&E industry:
I. Broadcasting
II. Films
International film studios such as Warner Bros., Disney, Fox and DreamWorks
have collaborated with local film production houses to develop Hindi and regional
films. Some recent investments in the M&E industry by global player’s includes3:
Press commissions:
To make comprehensive inquiry & to examine issues associated with its working
journalists & freedom of press machinery ensuring high standard of journalism,
government of India appointed underwent two press commissions:
Press Commission submitted its annual report in 1954, made several important
recommendations, which help in constituting the profession of journalism in
systematic manner.
Press should act as a vital body for the development of the society.
Widely accessible to all & also accountable to everyone in the society.
Press should act as bridge between the Government & Public.
Formation of Newspaper Development Commission (NDC) for the growth
of Big, Medium, Small Newspapers.
Newspaper should introduce price & page schedule.
Newspaper should have a stable advertisement policy bagged by the
Government of India.
Press law should be amended.
Free functioning of press being unbiased & producing quality content.
The importance of the non-statutory Wage Boards has consequently declined over
a period of time and no non-statutory Wage Board has been set up after 1966,
except for sugar industry, where last such Wage Board was constituted in 1985.
The trade unions, having grown in strength in these industries, are themselves able
to negotiate their wages with the management.
The Central Government shall, as and when necessary, constitute Wage Boards,
which shall consist of
Since 1955, the government has constituted 6 wage boards at regular intervals for
the working journalists.
Production / printing;
employee compensation;
marketing;
Distribution.
Newsprint (the paper on which news is printed) accounts for 50-60 per cent of the
production costs, with prices varying $400 to $1,000 per ton. The more the number
of copies printed, the more money is lost, unless every increase in circulation is
accompanied by an increase in advertising revenues. Many leading newspapers are
known to limit circulation during years when the advertising revenue growth is
static to reduce expenses on printing.
It is estimated that the actual cost of producing a copy of newspaper is around Rs.
20 to Rs. 25, but the selling price is Rs. 5. This has been possible because the
newspapers recover their costs from advertisements placed in the papers, while
keeping the price low for subscribers. Even out of the cover price of Rs. 5, only 60
per cent (i.e., Rs. 3.00) reaches the newspaper with the rest going to trade
commission for distribution.
Employee compensation accounts for around 12-20 per cent of the total revenues
of a newspaper. These costs do not vary with circulation, and are considered fixed.
As more newspapers, television channels and news websites are being launched in
recent years, there has been growing demand for professional journalists and
thereby the people costs have increased by two to four percentage points since
2006.
These days it is also extremely important for a newspaper to build its brand image.
A newspaper needs to reinforce its identity in many ways to its readers, as seen for
example in the outdoor ads by Deccan Chronicle and The Times of India in
Hyderabad. In addition to this, it needs to compete with other media outlets for
advertising. To achieve these goals, marketing has acquired importance and has
become a significant cost factor.
Distribution costs include the margins given to agents and the cost of unsold
copies. This is the commission paid to hawkers who deliver the paper to homes and
sell the paper at shops. For large newspapers like The Times of India and Dainik
Jagran, distribution costs account for 7-8 per cent of the total sales.
On the revenue side, the main sources are circulation, advertising, subscriptions,
and brand extensions. Circulation revenue is the money that comes from the retail
price of a newspaper after deducting the trade margins and the cost of unsold
copies. Advertising revenue amounts to around 80 per cent of the total revenue for
a mainstream English daily. Ad revenues depend upon language, ad rates,
readership profile and the paper's market position. Though subscriptions are not as
common as in magazines, these are sometimes offered. For instance, a paper may
sell a one-year subscription at half the usual price. This is in a way buying
circulation in the hope of being able to increase ad rates in the near future.
In sum, running a newspaper has become a full-fledged business that calls for a
large outlay of capital. News itself is one of the most perishable commodities in the
world. Few other kinds of enterprises equal the newspaper business in intensity of
competition or in the directness of its dependence upon public acceptance. Good
will is vital to its success, yet is so fragile and intangible, that bad judgment or
unsound or unpopular policies can ruin in almost overnight.
Economics of Television:
There are various ways you can run a business not just one. Each way having its
own advantages and disadvantages, also depending on your current position some
ways might be more beneficial to you than others. When applying that to the legal
status of your companies there are four main types of ownership which are:
Sole Trader – This is when a business is run solely by one person, you are your
own boss and everyone else needs to answer to you. This is the most common type
of status for a business for many reasons such as the facts you don’t have to run
your decisions through anyone else other than yourself you have full control.
You also retain all profits made from your company and also you don’t have to
share any personal data of your company if you do not wish too. However if
anything does go terrible wrong and you end up going bust you are liable, meaning
if you run into any debt and your business can’t pay it off they’ll begin to take your
personal possessions.
Another disadvantage is that due to all the responsibility falling on yourself, you
may lack creative new ideas for your business. With the help of someone else these
ideas or decision making situations will done a lot easier.
Also when you’re a sole trader you often struggle at first harder than any other
legal status to get any startup capital for your business. Due to the fact you’re on
your own banks won’t be as quick to lend you money and you’ll most likely have
to do some long-term saving or borrow of friends and family.
Partnership – When two or more people come together to form a joint business,
this is called a Partnership. Perhaps they have a common business idea but don’t
want to go all in by themselves and want someone to split the start up costs,
responsibilities or decisions etc. Those are examples of reasons as to why someone
would want to go into partnership.
Being in a partnership does have its advantages such as flexibility, If you can’t or
are unable to do something you’d fall back on your partner to help you out, vice-
versa. Also you’ll be able to put more startup capital within the business because
you have two people to do so unlike if you were a sole trader. This could speed up
the growth of the business and the bigger you get comes bigger problems, however
being in a partnership you can sort them out together making decision making a lot
easier to sort out.
On the other hand if you have a disagreement or a falling out this could put the
business at jeopardy, this is why it is ideal to draft a deed of partnership so
everyone knows the procedure if you were in a disagreement scenario.
Another thing is that any profit made has to be split between all partners evenly,
unless something else was arranged in the deed of partnership. Whereas a Sole
trader retains all profits by himself, but if your business goes bust all partners are
reliable to cover the debt rather than one person.
Limited (LTD) Company – This other type of legal status title speaks for itself
stating the biggest advantage, which is that it has limited liability. This means the
owners are financially and only the finances to do with the business are covered if
it was to ever go into liquidation.
This puts investors at ease and more likely to invest into your business or product.
There are three kinds of ‘Limited Companies’ to choose from, one being ‘Public
Limited Company’ (PLC) where there has to be at least two members to start up,
with at least 50,000 availability shares to distribute to the public.
Another one is ‘Private Limited Company’ very similar to a PLC, however it can
be ran with one or more member and it cannot trade shares with the public in order
to raise capital.
The last one is called ‘Private company Limited by Guarantee’ which is one of the
less common types, it doesn’t require any form of share capital however members
are required to pay a fixed amount in case of the business goes bust. A lot of
charitable organizations use this form of liability.
Legal aspects:
In everyday life and in business there are laws that you have to abide by, these are
called legislations. Which are basically laws set by the legislative governing body
one example of these laws within business are Health and Safety, this law protects
the health, wellbeing and safety of its employers by defining general duties for
specific types of people.
A good thing about the HSA is that it boosts employee’s morals because they
know they are working in a safe area, which could also increase productivity as a
worker. Other legal aspects within a small business would be contracts, which is a
written or spoken agreement between an employee and employer. In this
agreement the employee would be informed on his role within the business,
employment conditions, rights and duties.
Sources of finance:
All start up businesses need a fairly large sum of capital for it to be up and running,
although it can be very difficult for people to raise this type of money there is
financial help out there for you. Things like the grants and loans can be given out
through the government or their projects that you have to apply for E.g. Princes
Trust.
An advantage of this is usually they’ll give you some professional business advice
and help because you have to pay this money back and they want to equip you with
the skills so you’re able to do so. Another advantage is that because it’s from the
government you borrow larger sums of money in comparison to loaning from a
friend or business angel.
Some disadvantages would be that to actually get a grant or loan from the
government is quite competitive, other people are there for the same reason so you
need to make sure you have a strong idea and business pitch. Another disadvantage
is that you are limited to what you actually spend the money on if received; they’ll
monitor your spending habits regularly, making sure your spending the money
appropriately.
Budgeting and media planning:
“A budget is telling your money where to go instead of wondering where it went.”
Dave Ramsey
If an organization accepts that advertising is necessary for sales and growth, it will
create a conversation about how much of the overall budget will be allocated to
advertising, and further, a discussion about how much of that will be set aside for
media. The ad budget is part of the overall expenditure of an organization, while
the budget for the media plan is part of the overall budget set aside for advertising,
minus the other expenses involved in creating advertising (time, creative, external
agencies etc).
Media planners develop a media mix by considering a budget-conscious program
between the objectives of the campaign and the properties of the media that could
be used. They consider how each vehicle provides a cost-effective contribution to
reaching the objectives, and then they select the mix of media that best attain all of
the objectives – of course all within budget!
Different size and shape organizations, with different overall budgets and very
different objectives mean that there is no one size fits all approach to budgeting for
media. To take that variety into consideration, all media plans (and budgets) have
to be bespoke. Despite these differences, all media plans need to operate within the
constraints of a budget. Here are a few questions that we think it almost always
worth considering before settling a budget.
Is the advertising (and media) budget correlated with overall marketing
objectives?
Is the budget fixed on a percentage of sales (past or anticipated)? Is it
objective based? Or perhaps loosely based on what the competition spends?
Who is the target consumer?
What media type will be most useful in reaching the target consumer?
Which media would best fit the creative?
What is required to get the target consumer to take action?
How much profit is expected to be earned for each pound spent?
What is the cost efficiency of the media considered?
How much flexibility is there in the media plan, can it run on or take into
consideration media deals?
What plan has you and/or your media planning agency, got in place for
post-campaign analysis?
Business is business and it all boils down to what makes sense and cents. The key
to keeping within your budget is to set one with all your needs in mind. Whether
you are starting a business or have been running one for 10 years or more, you
need to budget in order to thrive.
Capital costs:
Those are fixed, one-time expenses incurred on the purchase of land, buildings,
construction, and equipment used in the production of goods or in the rendering of
services. Put simply, it is the total cost needed to bring a project to a commercially
operable status. Whether a particular cost is capital or not depend on many factors
such as accounting, tax laws, and materiality.
Capital costs include expenses for tangible goods such as the purchase of plants
and machinery, as well as expenses for intangibles assets such as trademarks and
software development. Capital costs are not limited to the initial construction of a
factory or other business. Namely, the purchase of a new machine to increase
production and last for years is a capital cost.
Capital costs do not include labor costs (they do include construction labor).
Unlike operating costs, capital costs are one-time expenses but payment may be
spread out over many years in financial reports and tax returns. Capital costs are
fixed and are therefore independent of the level of output.
Production Cost:
Production cost refers to the cost incurred by a business when manufacturing a
good or providing a service. Production costs include a variety of expenses
including, but not limited to, labor, raw materials, consumable manufacturing
supplies and general overhead. Additionally, any taxes levied by the government or
royalties owed by natural resource extracting companies are also considered
production costs.
BREAKING DOWN 'Production Cost:
Also referred to as the cost of production, production costs include expenditures
relating to the manufacturing or creation of goods or services. For a cost to qualify
as a production cost it must be directly tied to the generation of revenue for the
company. Manufacturers experience product costs relating to both the materials
required to create an item as well as the labor need to create it.
Service industries experience production costs in regards to the labor required to
provide the service as well as any materials costs involved in providing the
aforementioned service. In production, there are direct costs and indirect costs.
In media: production cost is divided into 3 slots:
pre production
production
Post production
Commercial Policy:
The regulations and policies that determine how a country conducts trade with
other countries. A country's commercial policy includes the use of tariffs and other
trade barriers, such as restrictions on what goods can be imported or exported, and
which countries are allowed to import or export goods to the home country. A
media democracy focuses on using information technologies to both empower
individual citizens and promote democratic ideals through the spread of
information.
Additionally, the media system itself should be democratic in its own construction
shying away from private ownership or intense regulation. Media democracy
entails that media should be used to promote democracy as well as the conviction
that media should be democratic itself, media ownership concentration is not
democratic and cannot serve to promote democracy and therefore must be
examined critically.
The concept, and a social movement promoting it, has grown as a response to the
increased corporate domination of mass media and the perceived shrinking of the
marketplace of ideas. The term also refers to a modern social movement evident in
countries all over the world which attempts to make mainstream media more
accountable to the public’s they serve and to create more democratic alternatives.
Execution involves the airing of program in accordance with the plans. The
program manager coordinates the scheduling content with traffic personnel and its
promotion with promotion director. If news is handled by separate department,
coordination is necessary on coverage of special events and breaking stories.
Production Terms:
Control process & Procedures: It is an important aspect of media organizations and
their structures. Unless control mechanism is in place to monitor organizational
activity, no one knows whether the organization is heading in the direction in
which management intended.
Control Process & Procedures as a four-step process:
Comparing performances to
standards
Taking Corrective
actions
Production schedule: It’s the process of making the schedule on events that are
running in the production. They can be anything which is going to presented for
telecasting.
Media evaluation: It’s a discipline of the social sciences and centers on the analysis
of media content rating the exposure using a number of pre-designated criteria
commonly including tonal value and presence of key messages. It is said to be one
of the fastest growing areas of mass communications research.
Budget Control: Budgetary control refers to how well managers utilize budgets to
monitor and control costs and operations in a given accounting period. In other
words, budgetary control is a process for managers to set financial and
performance goals with budgets, compare the actual results, and adjust
performance, as it is needed.
Always in Control:
Set percentage alerts at key budgetary levels and Concept will alert you as you
approach them. Monitor live information to always have the most up to date view
on your budgetary position. Add additional elements to your budget or replace it
entirely, we know your work is flexible so we are too.
Budget Lifecycle:
Detail expected costs and sales for your tasks and deliverables in Concept using
cost categories defined by you. Now you have a baseline for your project. Build up
cost information on your job via purchases and timesheets knowing Concept is
keeping a close eye on your profitability.
‘Costing’ in Media:
Compensation structure of the agency
Agency structure and assignment of roles and responsibilities to each
position
Salaries for each position
Experience level of each person within each position
The efficiency of agency operations process and workflow
Changes in objectives, strategy, and campaign parameters
Account management demands dependent on client
Amount of research that needs to be conducted
Number of teams/agency partners involved (i.e. media, creative, promotions,
CRM, etc.)
Size and number campaigns and the number of sites / placements considered
Complexity of deal structure (i.e. banners vs. custom integration)
The number of creative executions and formats Implementation errors
caused by media vendors
Tracking requirements, reporting needs, analytics, etc.
Tax:
Effective management of your tax planning and compliance in these and other
areas may offer opportunities for tax savings that you can reinvest in research,
production facilities and marketing.
In addition, these tax savings are continuing opportunities to pursue research and
development tax credits around the world – especially if your company is involved
in development of digital effects, digital distribution of intellectual property and
specialized software.
In this environment, managing compliance while pursuing growth and competitive
advantages means having an efficient, effective tax strategy and approach. The
Indian Media and entertainment industry is a sunrise sector with a rapid growth
curve.
India is globally the fifth largest Media and entertainment market. Media and
entertainment is one of the sectors identified by the Indian Government under
"Make in India" initiative.
Taxations in India:
Advertising on television channels:
Typically, three parties are involved for advertising arrangements on
television channels, namely – broadcaster, advertising agency, and
advertiser. Payments are made by the advertiser to the advertising agency
and by the advertising agency to the broadcaster.
Recently, the CBDT has clarified regarding the withholding tax applicability
on "the fees/charges taken or retained by the advertising agency" i.e.
whether the same is in the nature of discount or commission. If this amounts
to commission, withholding tax at 10% is applicable.
It has been clarified that withholding tax would not be attracted on above
payments made by the broadcaster to the advertising agency or on amounts
retained by the advertising agency for booking, procuring, and canvassing
advertisements.
Entertainment tax
In most of the States in India, cable operators are liable to pay
entertainment tax and questions were raised as to whether such tax paid is
to be included in the value of taxable service for the purpose of
discharging service tax liability.
The Central Board of Excise and Customs (CBEC) has clarified that
entertainment tax collected and paid to the Government would not be
included in the value of taxable service, provided the cable operator
indicates the entertainment tax element on the bill raised upon the
customer.
Service tax on news agencies/ Journalist
Mega exemption notification, under service tax, provides an exemption
to any service provided, by way of collecting news, or any service
provided, by way of providing news to any person, by a specified person.
Such services are exempt from payment of service tax.
The said specified service providers are independent journalists, Press
Trust of India, and United News of India. The above entry makes it clear
that the service provided by stringers, both Indian as well as foreigners
would be outside the purview of service tax.
Service tax on print media
Sale of advertisement space in print media is not liable to service tax. 'Print
media' is defined to mean newspaper and book (not including business
directories, yellow pages, trade catalogues for commercial purposes). Thus,
print media houses do not pay service tax on majority of advertising revenue
earned.
However, corresponding service tax exemption is not extended to the service
providers (except a few) who provide services to such print media houses.
This results in additional (service tax) cost to print media houses on services
availed.
Newsprint:
Print media houses typically use newsprint for printing newspaper and
currently import nearly 25%-30% of the newsprint into India.
While this could marginally reduce the cost, it could also result in newsprint
being dumped into India by overseas suppliers and adversely impact the
domestic newsprint manufacturers. The registered newsprint manufacturers
may not be able to sell their product competitively and there could be large
quantum of imports adding to the burning foreign exchange outgo issue and
revenue loss to the country.
Withholding tax on band placement Fees
Service tax on band placement fees
Dual taxation on copyright Transactions
Withholding tax on transponder fees
Indirect tax on transponder fees
Labor laws:
What’s Labor Law??? Labor Law is the “Body of Laws, Administrative Rulings,
& Precedents” which address the Relationship between & among “Employers,
Employees & Labor Organizations”, often dealing with issues of Public Law.
The terms Labor Laws & Employment Laws, are often interchanged in the usage.
This has led to a big confusion as to their meanings. Labor Laws are different from
Employment laws which deal only with employment contracts and issues
regarding employment and workplace discrimination & other Private Law issues.
“Labor Laws” harmonize many angles of the Relationship between “Trade Unions,
Employers & Employees”.
PR for building and sustaining business and audience:
In today’s media rich market, the world of business is characterized by fierce
competition, Reputation can be company’s biggest asset. And Public Relations is
all about Reputation – the thing that makes you stand out from the crowd and gives
you a competitive edge.
PR can be the most important weapon in your marketing arsenal, Effective PR can
help raise your company’s profile, managing its reputation and building
relationships with all organization stakeholders, all of which are vital to your
success. Aspire is a cutting edge independent PR & digital communications agency
in India that uses the most powerful tool of the PR trade: publicity.
At Aspire, we create, design, and engage content, connect people and build digital
relationships. Our PR specialists communicate with the target audience directly or
indirectly through media with an aim to create, maintain and sustain a positive
image and strong relationship with the audience.
What is meant by PR Strategy?
Understanding vision and mission of the client.
Research and analyzing of client’s product & services etc.
Communication history.
Digital Media presence.
With an effective PR, an organization’s overall marketing and communications
strategy becomes more integrated. At Aspire, we have the expertise, resources and
media connections to help take your company to the next level and increase your
credibility as a potentially lucrative and stable investment target.
The strategic role of PR for consumer brands is critical to extending the impact and
credibility of advertising. The questions we so often ask from a PR effort are:
What are you trying to achieve with your PR over the long run
How does it integrate with your marketing and communications plan
Although bleak and uncertain, today's business climate can be a boom for PR
strategists who are willing to change their time-honored tactics.
It's definitely been a buyers' market for agency media buyers and ad managers, and
the trend should continue this year. In addition to promoting one's company in the
print media, B2B public relations practitioners should look into cyberspace - the
Internet. It's everywhere, it's instantaneous - and it's increasingly the first place
industry looks for breaking news.
UNIT – V
Administration and program management in media:
Scheduling is the process of arranging, controlling and optimizing work and
workloads in a production process or manufacturing process.
Transmission is the process of broadcasting something by radio, television, etc., or
something that is broadcast.
Record-keeping: the activity or occupation of keeping records of something. The
activity of organizing and storing of all the
documents,
files,
films,
documentaries, etc.,
Relating to a company's or organization's activities.
Quality control: A system of maintaining standards in manufactured products by
testing a sample of the output against the specification. A part of quality
management focused on fulfilling quality requirements which is proposed by the
clients/audience.
Program planning:
Program planning involves the development of short, medium and long range plans
to permit the station to attain its programming and financial objectives.
In radio planning, focus is on the selection format and other program content to
attract and satisfy the needs of demographics. Planning includes the hiring of
announcers whose personality and style are compatible with the stations format.
In television, planning directed towards the selection and scheduling of program to
appeal to the largest no of people.
Marketing strategies:
A plan of action designed to promote and sell a product or service. An
organization's strategy combines all of its marketing goals into one comprehensive
plan. A good marketing strategy should be drawn from market research and focus
on the product mix in order to achieve the maximum profit and sustain the
business. The marketing strategy is the foundation of a marketing plan.
Marketing Plan
A business must have a marketing plan in order to produce, communicate, and sell
products and services. Using research on segments of the target audience, a
marketing plan is written. Once the plan has been developed, a budget is set for the
promotional campaign.
Brand promotion:
Promotion is a term used frequently in marketing and is one of the market mix
elements. It refers to raising customer awareness of a product or brand, generating
sales, and creating brand loyalty. It is one of the four basic elements of the market
mix, which includes the four P's:
price,
product,
promotion, and
Place.
Brand promotion includes:-
Making Consumers Aware of brand
Key selling points and Competitiveness
Building a Loyal Client Base
Sales, Profits and Company Value
Maintaining the Image
Looking to the Future
The Element of Passion
Promotion
The first step for the marketer is to develop a marketing communications strategy.
The strategy will define the consumer, the best way to reach them, and what the
message should be. This process is called the marketing mix. The process goes
through the following steps:
Segmentation
Targeting
Positioning
Messaging
Targeting: Targeting is the best way to communicate with the chosen segments.
The marketer will want to ensure the best possible customer response. The
marketing plan must detail how to target the intended audience, and define any
marketing objectives.
"Positioning is the key to this process, but all aspects of the marketing mix help
define the brand. To position a business successfully, the company must meet or
exceed all expectations and look good in the eyes of the consumer.
Positioning will also take competitors into account, and will give the company an
opportunity to set itself apart from other similar products.
Developing the Message: The marketer has the segments, the target, and the
position; what is next? He needs the message. What does he want to say to
influence his potential customers? The marketer's objectives should be aligned
with the marketing strategy, and will fit into one of the following categories:
Inform – Increase awareness of the product and brand, and try to gain an
advantage.
The best results come from clear and distinctive promotions, so it is important the
marketing works together to formulate a clear message for the targeted audience.
The best message won't work if it doesn't get to the proper audience.
The field of HRD spans several functions across the organization starting with
employee recruitment and training, appraisals and payroll and extending to the
recreational and motivational aspects of employee development. HRD in media: