Media Studies - How the product will be financed and where it would fit into the current market.

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Jonathan Youd.

Media Studies - How the product will be financed and where it would fit

into the current market.

Now that I have completed this product, I now need to concentrate on the funding for the magazine company. As I learnt from the research I carried out, many magazine companies are financed through advertising and other companies being allowed to advertise their products in the magazine. For example, the “cool” clothing advert from the clothing company was put in this magazine. The clothing company paid our company to advertise their product in our magazine. Although most magazines are financed from the main publishing house, advertising is the main way in which magazine companies are funded.

Finance and revenue are naturally very important for the magazine because for the magazine to be mass produced and distributed the company needs money to do so.

Advertising is used in the media a lot, not just in magazine companies. In television, for example, the company ITV are funded through advertising and they are a profit making organization. Although the BBC television and radio company are financed through television licensing: people have to pay a certain amount of money each year for the privilege of watching BBC television programmes. The BBC would present the government with figures of television ratings and would persuade them to introduce television licensing for the public. Advertising is a way of getting a message from the vendor to the buyer. The message needs, as with all communication, a medium to carry it. The plural of medium is media. Advertising media and more expensive the more wide ranging they are and the more effective they are. Businesses need to choose media as a part of their marketing strategy to ensure that the message is being delivered to the right  market segment. Some advertising can be targeted (using particular broadcast times, programmes, magazines and journals). Other advertising, such as posters, will aim to reach as many people as possible.

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Another way this magazine company could be financed is through shareholders were people buy and sell a proportion of company. For instance, if someone wanted to buy a share of our company they would go to their stockbroker and buy the amount of shares they desired. They would then invest their money in our company and they could sell their shares when they wanted to. They would naturally sell their shares when our company’s profits were at a high level.

In order for the company to be successful, the company has to spend money to earn money. For ...

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