ABSTRACT

Why would a media company want to reduce its audience by segmenting and targeting in a particular way? The answer is that decisions to segment and target are based on business considerations. Why and how executives engage in segmentation and targeting differs according to whether or not their media outlet is supported primarily by advertising funds. Recall from chapter 2 that some media companies rely mostly on advertising for their revenues. Other companies get support from a balanced combination of advertising and subscriptions. Still others get most of their support from individual purchases or subscriptions. If a marketer sees that particular segments are well off economically or are more likely than other segments to purchase its products, the marketer will target more lucrative segments and pay less attention to the others.