Dubai International School

Subject: Media

Academic year: 2016-2017

Summary for End of Term 1 test

Term: 1

Grade: 12

Three key concepts to remember:

The mass media are profit-centered business
Technological developments change the way mass media are delivered and
consumed.
Mass media both reflects and affect politics, society and culture.

Mass media are profit-centered businesses:

Means that the first concept to grasp is that the central force driving the
media is the desire to make money.
Of course, there are other motives that shape the media, like:
The desire to fulfill the public's need for information
To influence the country's governance
To offer entertainment.
But above all profit-centered
The trend is for media companies to cluster together into big groups, which means
that a small number of companies now control many aspects of media businesses.
This trend called concentration of ownership:
And it takes four different forms:

Chains:

The word chain is used to describe a company that owns a several

newspapers,
Just like Benjamin Franklin who established America's first newspaper chain
in the 1700s.
Chain is not regulated by the government.

Broadcast networks:

A broadcast network is a collection of radio or television stations that offers

programs during the designated program times.
The Federal Communications Commission (FCC) regulates broadcast station
ownership.
The (FCC) is a government regulatory body whose members are appointed
by the president.
Broadcast networks can have as many affiliates as they want. Affiliates are
stations that use network programming but are owned by companies other
than the networks.
No network can have two affiliates in the same geographic area, due to
government regulation.

Conglomerates:

Companies that own media companies as well as businesses that are

unrelated to the media business.
Such as Sony pictures entertainment film, owns Sony music & owns a
Micronics a medical diagnostics company.

Vertical integration:

Another widespread trend among today's media companies is vertical

integration.
A business model in which one company controls several related aspects of
the media business at once, with each part of the company helping the
others.
Many media companies own more than one type of media property:
Newspapers, magazines, radio and TV stations.
Like the Walt Disney Co. Owns Disneyland amusement parks & Walt
Disney motion pictures group.

Convergence Dominates the media business:

To describe the financial status of today's media industries is like talking about
competition.

Media companies are buying and selling each other in unprecedented numbers,
to position them self in the marketplace to increase their income.
Since 1986, all three original TV networks (NBC, CBS, ABC)
Have been sold to new owners
To make themselves a smaller parts of giant networks.

Convergence:

The word convergence describes two developments taking place

simultaneously.

Convergence:

First it means the melding of the communications, computers and electronics

industries because of advances in digital technology.

Second it also means the economic alignment of different types of Media

companies together, so they can offer the variety of services demand.

The people who manage the media today want to make money. As in all
industries, some people who want to make money quickly and some making
money on a long term. But none of them wants to lose money.

One way to expand a company to take advantage of technological and economic

convergence is to acquire an already established business that's successful.

Public ownership:

Most media companies today are publicly traded, which means their stock is sold
on one of the nation's stock exchanges. This makes acquisitions easier.

So when one of the media companies want to buy another company, can buy the
other company stock when it becomes available.

The open availability of stock in this public companies means any company or
individual with enough money can invest in the American media industry.

Deregulation:

Beginning in the 80's the Federal communication commission gradually

deregulated the broadcast media.
Deregulation means the FCC withdraw many restrictions on broadcast media
ownership.
Before 1980 the FCC allowed the broadcast company to own only
5 TV stations
5 am radio stations
5 FM radio stations.
Companies also were required to keep station for 3 years before the owner could
sell it.
Today there are a very few FCC restrictions on broadcast media ownership.

Why media properties converge:

Ownership turnover is highest in the newspaper and broadcast industries.
6 factors have affected the economic alignment of these properties:

1- Media properties can be attractive investments, because many broadcast

companies have earned 10% a year which is double the average amount that
any US company earns.
2- Newspaper and broadcast stations are scarce commodities.
the number of newspapers has been declining.
And the government regulates the number of broadcast stations that are allowed
to operate a limited number of stablished media outlets.
This makes them attractive investment.
3- Newspapers and broadcast stations has moved past their early cycle of family
ownership.
If the heirs of a family business are not interested in running the company,
the only way for them to collect their inheritance is to sell the business.
And the only companies with enough money to buy individual media
business are large corporations and investment companies.
4- Newspapers and broadcast station are easier businesses to buy than to create.
Because this business requires huge investments in equipments and people,
they are expensive to start up.
In broadcasting the major factor that encourages ownership changes was the
regulations.
This allowed investors who have never been in broadcast business before to
enter the industry, using bank loans to pay for their investment.
Some new owners of broadcast media companies found this as a chance to
invest the minimum amount in their business, and put it on hold until the market
is favorable to sell it at a huge profit.

5- In the 1990 the new technology's especially the internet changes the
economics of all media industries.
Each industry has to adapt to the internet, and the fastest way to gain internet
expertise was to buy or invest in a company that already had created an internet
presence or a successful internet product.

6- The economic downturn that began in 2007 hit the newspaper business
hard, especially those where depended on real state advertising and classified.
Many owners of Newspaper Company begin losing money in very high rate.
This fall in profits drove their stock prices to a new laws, which made them
unable to takeovers and buyouts as the companies struggled to survive.

Supporters of concentrated ownership and conversions agreed that the

large companies can offer more advantages than the small companies can afford
such as training for employees, higher salaries, and better working conditions.
But the major arguments against them are that they are much power limits of
opinion and quality of ideas to the public.
Which reduce what schoolers call message pluralism ".
Message pluralism is the availability to the audience of a variety of information
and entertainment sources.

Advertisers and Consumers pay the bills:

- The cost of Producing Newspaper, TV Channel or Radio Channel is all paid
by the advertisers and the consumers.
- Most of the income the American mass media collect comes from
advertising.
- Advertising directly supports newspapers, radio & television.
- Subscribers pay only a small part of producing a newspaper.
- Advertisers pay the biggest portion.
- Magazines receive more than half their income from advertising and the
other portion from subscribers.
- Income for movies, recording and books comes from direct purchase and
tickets sale.
- This means that companies that want to sell you products, pay for the most
of the information and entertainment you receive from everywhere.
- You support the media industries indirectly by buying products.
- American media industries accumulate over $ 200 billion as annual revenue
from advertisers and consumers only.
- Advertisers and consumers are the financial foundation for Americans
mass media industries, because different audiences provide a variety of
markets for consumers.

Technology Changes Mass Media Delivery and Consumption:

The history of mass media communication involves 3 information communication
revolutions:
1. Phonetic writing
2. Printing
3. Computer technology

Phonetic Writing: the first information communications revolution.

Early attempt of writing communications began with the pictograph.
and it means the use of symbols of an object to represent sounds & ideas.
the first pictograph is known at 3500 B.C
the stone in which pictograph were created to transmit messages.
In about 2500 B.C Egyptians invented papyrus, a type of papers made from
grass like plant called sedge, which was easier to write on.
- And there are so many examples for the revolution of the Pictographs
(symbol of an object used to represent ideas, sounds & transmit messages)
- Printing: The second information communications revolution
- Began in Germany in 1455 by Johannes Gutenberg when he printed a bible
on a movable type press.
- The second information communication revolution meant that knowledge
which had belonged to the privilege few, would one day be available to
everyone.
- Because once information could be duplicated easily, it could travel to
people beyond the society.
- For the first time, knowledge was portable and storable.
- So by definition, mass communication is information that is available to a
large audience quickly.
- Computer Technology:
- Todays age of communication is the third information communication
revolution because computers have become the storehouses and
transmitters of information on the written word.
- Electronics technology, which is driving the majority of changes affecting
todays media.
- The third Information communications revolution (Satellite broadcast,
Digital recordings and the Internet) are just the three examples of the third
information communications revolution.

Dumb Vs Smart Communication

Television is the next example for the Dumb communication, it can only deliver
programming but you cant talk back to the people who send the programming.
You also cant add or delete anything in this programming.
You can record something to watch latter but you cant rearrange a TV network
schedule to show all your programs when you want to see them.
Telephone is much smarter communication, as when you talk on the telephone
the other end of the conversation can listen to you and reply back right away.
AND IN THE CASE OF TELECONFRENCE this can involve a several people at the
same time.
This technology used in the telephone communication is called Digital
Communication: Data in a form than can be transmitted and received
electronically.
Computers also is smart communication but its different that the telephone and
TV as it can store digital informations for future use.

Dubai International School

Subject: Advertising

Academic year: 2016-2017

Summary for End of Term 1 test

Term: 1

Grade: 12

A model of mass mediated communication:

Production

Negotiation
Reception

Interaction of
advertiser.
Imagined
audience.
Agency,
media, &
other social
institutions.

Message intent

History
Personality
Imagined
advertiser
Purpose forming
of reception

Consumers
understanding
Of the
advertisement

Meanings
formed:
Common and
personal

The Audiences for advertising:

- In the language of advertising, an audience is a group of individuals who
receive and interpret messages sent form companies.
- Any large group of people can be an audience (house hold consumers,
college students, business people)
- A target Audience is a particular group of consumers singled by advertising
campaigns.
- This target audience are singled out because they like the product category.
- Target audience are always potential audiences because a company can
never be sure that the message will actually get through to them.
- Targeting audiences simply means that the company wants to reach you
with a message.

Audience Categories:
There are 5 types of audience are commonly described:
-

Household consumers
Members of business organizations
Members of trade channel
Professionals
Government employees

Household Consumers
- Are the most targeted audience because the most mass media advertising
is directed to them.
- There are about approximately 316 million household consumers who
spend trillions of dollars per year on retails goods and services.
- A target audience definition such as men 25 to 45 in professional
occupations, with incomes greater than $ 50,000 per year would be the
kind of audience The companies would wish for.

Members of business organizations

- The most second important target for the advertising companies.
- Members of business organizations are the focus of advertising for firms
that produce industrial goods and services such as (office equipments,
industrial machinery etc.)
- These members of trade are targeting household members as well as
business. so for example if there is a product in which they couldnt gain
enough retail and wholesale distribution, the product will not reach the
household consumers, in this case its important to direct advertising to the
trade level which is the members of business.

Professionals
- One of the special targeted audience such as doctors, lawyers, teachers.
- This audience has special classifications because they have specialized
needs and interests.
- Advertising companies highlights products and services that uniquely
designed to serve their needs.
- Such as Trade journals: example (Electrical Contractor), are magazines
published specially for members of a trade and carry a highly technical
articles.
Government officials and employees
- Advertising to this type of audience is dominated by direct mail, catalogs,
personal selling and web advertisings.
- Producers of items such as office furniture, computers, vehicles and more,
are always targeting those kind of audiences due to the large dollar volume
of buying.

The Audiences for advertising:

In the language of advertising, an audience is a group of individuals who
receive and interpret messages sent form companies.
Any large group of people can be an audience (household consumers,
college students, business people).
A target Audience is a particular group of consumers singled by
advertising campaigns.
This target audience are singled out because they like the product
category.
Target audience are always potential audiences because a company can
never be sure that the message will actually get through to them.
Targeting audiences simply means that the company wants to reach you
with a message.

Audience Categories:
There are 5 types of audience are commonly described:

Household consumers
Members of business organizations
Members of trade channel
Professionals
Government employees

Household Consumers:
Are the most targeted audience because the most mass media advertising
is directed to them
There are about approximately 316 million household consumers who
spend trillions of dollars per year on retails goods and services.
A target audience definition such as men 25 to 45 in professional
occupations with incomes greater than $ 50,000 per year would be the kind
of audience the companies would wish for.

Members of business organizations:

The most second important target for the advertising companies.
Member of business organization are the focus of advertising for firms that
produce industrial goods and services such as (office equipments,
industrial machinery etc.)
These members of trade are targeting household members as well as
business.
so for example if there is a product in which they couldnt gain enough
retail and wholesale distribution the product will not reach the household
consumers, in this case its important to direct advertising to the trade level
which is household.

Professionals:
One of the special targeted audience such as doctors, lawyers, teachers.
This audience has special classifications because they have specialized
needs and interests.
Advertising companies highlights products and services that uniquely
designed to serve their needs.

Government officials and employees:

Advertising to this type of audience is dominated by direct mail, catalogs,
personal selling and web advertisings.
Producers of items such as office furniture, computers, vehicles are always
targeting those kind of audience due to the large dollar volume of buying.

Audience geography:
- Audiences can also be broken down by geographic location, because of
cultural differences, very few ads can be effective for all consumers
worldwide.

Global advertising:
- Is advertising that used worldwide with only minor changes in the visual
and message content.
- Very few ads can use global advertising.
- These are the brands that are considered "citizens of the world" and whose
manner of use dose not vary by culture.

International advertising:
- Its When firms prepare and place different advertising in different national
markets for the same brand outside their home market.
- Each international market may require advertising due to product
adaptation or message appeals tailored specifically for that market.
- Unilever prepares different versions of ads for its laundry products for
nearly every international market because consumers in different cultures
approach the laundry task differently.

National advertising:
- Reaches all geographic areas of a single nation.
- National advertising is the term typically used to describe the kind of
advertising we see in the mass media.
- Dose international advertising use many different national advertising
efforts?
Yes, that's is exactly the relationship between international advertising and
national advertising.

Regional advertising:
- Is carried out by producers, wholesalers, distributers and retailers that
concentrate their efforts in a relatively large but not National Geographic
region.
- Example Albertson's a regional grocery chain, has stores in 31 western.

Local advertising:
- Is directing to an audience in a single trading area, either a city or state.
- Under special circumstances, national companies share advertising
expenses in a market with local dealers to achieve specific advertising
objectives.
- This sharing of advertising expenses between national companies and
local merchants is called cooperative advertising.

1-5 Advertising as a business process

Advertising is a business process as a communication process
- For multinational companies as Boeing as well as small local companies,
advertising is basic business tool that is essential to retaining customers
and attracting new customers.
- Advertising functions as a business process in 3 ways :
1st We will consider the role of advertising in the marketing and brand
development programs in firms.
2nd The types of advertising used by the firms.
3rd Identifying the economic effects of the process caused through the
advertising.

The role of advertising relates to 4 important aspects of the

marketing process:
1- Contributing to the marketing mix.
2- Developing and managing the brand.
3- Achieving effective market segmentation, differentiation and
positioning.
4- Contributing to revenue and profit generation.

1-5a the role of advertising in the marketing mix

What is marketing?
- Marketing is the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational objectives.
- Marketing people assume a wide range of responsibilities in any
organization related to conceiving, pricing, promoting and distributing
goods, services and even ideas.
- These 4 areas of responsibilities and decision making in the market are
known as the Marketing Mix.
- The word mix describes the blend of strategic on the product versus its
price, versus its promotion, versus its distribution when a brand is
marketed to consumers.

Introduction of new brand or brand extension:

Advertising is absolutely critical when organizations introduce a new
brand or extensions of existing brands to the market.
- Example: Snickers Ice cream is a brand extension of the original Snickers
candy bar.
- When brand extensions are brought to the market, advertising and IBP play
key role in attracting attention to the brand and they suggest that
managers should favor the brand extension with greater budget otherwise
it may fail even if its an extension to a successful brand.