Glossary of COM 417 Exam 2

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Created by cstoeckley

characteristics of marketing and technology innovations
begins with an entrepreneur recognizing a need in the population, the using a new technology to satisfy that need in a way that people begin recognizing the value of the new medium and how it can help them.

stages of technological innovation
growth, peak, decline, and adaptation
television was considered to be at its peak by the 1990s because it
took audiences away from radio and film, and advertisers away from radio and magazines, also became the primary source of entertainment and news, and was used more than any other medium
What did radio do in its adaptation stage to remain a viable and competitive industry in response to the emergence of television?
1.) stopped competing directly with TV by eliminating its general entertainment programs such as soap operas, sitcoms, and dramas. played pop songs instead. 2.) abandoned its strategy of trying to appeal to a general audience and instead segmented the market according to musical tastes. 3.) created music that became background music
the internet is now in what stage of development ?
penetration stage
four types of players in the media economics game
the consumer, the advertiser, the media companies, the media employees
What resources do the consumers bring to the economic game?
time and money
Why do people often overestimate the amount of money media employees earn?
because the media employees that earn the most are often in the limelight
What is the primary goal of all players in the game of media economics?
to maximize the value of the exchange for themselves
How much direct and indirect support does the average consumer contribute to the total revenue of media companies?
$970 billion a year
Why is the balance between direct and indirect support shifting from direct to indirect payment?
the costs of some hardware such as TVs, radios, CD players, VCRs, and DVD players and computers is coming down each year while the revenues generated through advertising of all kinds increase each year
How does the amount of money spent on the media compare with the total expenditures of the federal government?
federal spending is usually less than what is spent on media each year
Why do media businesses not often compete on the basis of product features?
the focus on product images instead and provides psychological advantages to using the product
What are some of the reasons that advertising is so important to our economy?
it has been the engine of new growth, it has also made it possible for new goods to enter markets and let us know immediately that they are available
What is ROR?
return on revenues
Why is it advantageous for a media company to become a conglomerate and control the distribution of messages in many media channels?
a company controls the distribution of messages in many media channels, it can easily market a single message across all channels and thus quickly create multiple revenue stream for that one message
What is a key factor which influences wages and salaries in the media industry?
amount of talent
How do media companies reduce risk?
have shifted to the marketing "concept" where managers conduct research to identify particular niche audiences, then findo ut what their unmet needs are
What is the goal of the consumer who follows the default strategy?
maintaining a minimal level of uninterrupted satisfaction
What are the consequences to the consumer who follows the default strategy?

value is determined more by the low cost of the exposures than by the high return
What are the expectations of the person who follows the media literacy strategy?

understand the economic game and how to be a better player; high expectations for a return on the resources they expand; strong personal locus
What has a significant influence on whether a consumer uses the default strategy or the media literacy strategy?
their personal locus- strong, media literacy, weak, default strategy
What has been one of the most significant impacts of computerization on the media industries?
media convergence
Why has the rise of computerization resulted in placing less emphasis on the medium or channel?
it is not simply a channel that allows you to access messages on the internet; it allows you to access messages previously available only in particular newspapers, mags, books, recordings, and film
What is the one of the dominant trends in the media industries?
an increase in female employees
Why can the computer not just be considered as a new channel of communication?
because of convergence
long-tail marketing
newer niche interests in the long tails
examples of cross media convergence
TiVo, iTunes,
What are some of the dominant socio-demographic patterns in the media industries?
more women are part of media industries
trend in journalism
most journalists are white, male and young. one third are women.
trends in media writers demographics
writers and getting younger and younger because marketing strategies in TV and film have been shifting to target younger audiences more
trends in advertising demographics
pay gap between men and women is closing

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