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Marketing and the Fashion Channel

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Since The Fashion Channel (TFC) is a very old fashion television channel, it needs to think strategically and feasibly for the company to achieve its targets and stay ahead of competitors so it can gain market share again. The goal of TFC is to increase its average rating by 3%, and increase in viewership by 3.2 million by the end of 2010 for the company to achieve a competitive position in the fashion television industry. In addition, to maintain a fixed CPM of 2, it is essential for the company to maintain its ad revenue and increase its advertisers. This can be done by showing more programming content targeting the age groups between 18-34 years, who are in different bracket ranges of Income. Further, they need to target the right viewers while offering advertisers an attractive mix of viewers. Other goals like consumer interest, awareness and perceived value will only be achieved once brand-loyalty is built up. CPM, Cost of Programming, and Marketing and Advertising expenses are the three marketing impediments that are acting as a potential threat to the company. Their estimates need to be revised in order for the company to achieve an average Net-Margin of 13% over the four years. CPM is a factor that a company needs to maintain, and by increasing its value, the company can face a loss of advertising revenue. Similarly, by decreasing its value the company can be portrayed as having no Perceived Value. Increasing the cost of programming every year by 33.33% is something on the high side and the company needs to revise this expense with Innovative Programming Strategies. Furthermore, increase in Marketing and Advertising expense by 33.33% is considerably high, and until you achieve a specific viewer category; only then will it sound reasonable for the company to increase its Marketing & Advertising Expense by such a high amount. On the other hand, the other impediments like operations, ad sales commissions and SGA are things that a

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