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BASIC CONCEPTS OF

MEDIA MANAGEMENT

Lin Bo

Training Centre, StateAdministration of Radio, Film

and Television, June 2007

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Purpose of Lecture

To enable participants to acquire a

basic perception of the principles

and theoretic concepts of Media

Management

To prepare participants to better

cope with daily management issuesin medias social practices

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Basic Layout of the Lecture

SocialP

olicy and MediaManagement Strategy

Medias Organisational

Performance Media Economics and Marketing

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Part One: Social Policy and

Media Management Strategy Strategic

SocialEnvironment

of Media

StrategicPositioning of

the Media

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Strategic Social

Environment of Media

Modern State

and Post

Modern State

Management vs.

Administration

Legal Aspects of

Media Operation

in Society

Keynes and

Freedman

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Modern State and Post

Modern State

Modern StatePeriod:

from World War IIto 1970s

P

ost ModernState Period:

from 1970s till now

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Modern StateP

eriod End of Free Capitalism System or

Free Market Economy

National Independence Movementand End of Colonialism or De-colonization

Socialist Movement and Cold War Prevailing Urbanization and BlindBelief in Science and Technology

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Post Modern State

Period

Establishment of Welfare-CapitalistSystem (Socialism in Essence)

Ending of the Cold War Emerging and Surging of High and New

Technologies (Information Age)

Wakening Awareness of Environment

Protection Transformation from Want Economy to

Consumer or Waste Economy

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Management vs.

Administration Management

Other Term for

Marketing,Privatization and

Profiteering

Administration

Other Term forPublic Service and

Public Welfare

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Legal Aspects of Media

Operation in Society Continental Law

System:

Statute Law Non-Judiciary

Oceania LawSystem:

Common Law(Convention)

Jury system

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Freedom ofP

ress Freedom ofPress is a

constitutional right of modernworld

Freedom ofPress is also animportant human right

Freedom ofPress is the lawfulright of the press

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First Amendment to the United States

Constitution:Congress shall pass no law respectingan establishment of religion, or

Prohibiting the free exercise thereof; orabridging the freedom of speech, or

of the press; or the right of the people

peaceably to assemble, and to petitionthe government for a redress

of grievances.

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Unlike the US Constitution, which only prohibits

the government interference with freedom of

press, the constitutions of many other countries

in the world have language that affirmatively

protects free expression. Typical wording of the

Constitutions of many countries, like China,

is similar to the following type of provision:

"The Country protects the Freedom ofPress" or

The free communication of thoughts and

opinions is one of the invaluable rights of man

and every citizen may freely speak, write or print

on any subject, being responsible for abuse

of that liberty.

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Laws Affecting Journalism

in Social Practices Criminal Law

(1) Law texts on

"treason" ornational security(et. Secret Act ofUK)

(2) Law texts on"riot"

Civil Law

(1) Defamation

(Libel) (2) Public official

and figure Rule

(3) Privacy (4) Obscenity

(5) Copyright

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Keynes and Freedman Keynes:

Advocator ofSocialInterference inEconomy

(Visible Hand) Socialism inEssence

Freedman:

Advocator ofFreedom andMarket Force inEconomy

(Invisible Hand) Free Capitalismin Essence

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Strategic Positioning of the

Media

Division of

Broadsheet Mediaand Tabloid Media

DifferentOperational

Models in Media

sSocial Practices

AudienceTargeting andSpecialization

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(1) Division ofBroadsheet

Media and Tabloid Media Broadsheet

Media

Mainstream Valuesof Society

Shift of ValueFocus: Education

Function Medias Social

Credibility

Tabloid Media

Human Interest of

ordinary andcommon people

Shift of ValueFocus:

EntertainmentFunction

Non-Responsibility

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(2) Different Operational

Models in Medias SocialPractices (1) BBC Model:

Public Service

(2) AmericanModel: Profiteering

(3) Combined

Model: Public-

owned but market-

driven in

management

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(3) Audience Targeting and

Specialization Turners CNN and

Fox NewsP

henomena Audience

Targeting: NoOver-Supply andNon-Completion inSpiritualProduction

Specialization ofTV Channels orRadio Stations

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Part Two: Medias

Organisational Performance

SWOT Analysis

and IPESTAnalysis ofMedia

Nature ofSpiritualProducts inMedia

Production

Multi-Level

Management

Human

Resources

Management

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SWOT Analysis and IPEST

Analysis of Media

SWOT Analysis: Strengths

Weaknesses

Opportunities

Threats

IPEST Analysis International

Context Political-legal

Context

Economic Context

Socio-CulturalContext

TechnologicalContext

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Example of SWOT Analysis Strengths

professional and skillful team

reliable engineer & technical staff team government unconditional policy backing;

excellent executive group

simplification strategies

Brand name and programs with good

audience rating

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Weaknesses

over-sized employment;

too high salaries

obsolete management style

lack of credible programs

lack of technical hardware

lack of damage control mechanism

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Opportunities

fast economic growth in the Asia Pacificregion

state policy protection and financial

support

voice of people public image

Threats

instability of target recipient group

threat from new entrants in market

social unrest

conflict of interest

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Chart of IP

EST Analysis

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Nature of Spiritual Products

in Media Production

Difference

between

Spiritual

Production

and Material

Production

The Need for

Quantitative

Repetition in

Media

Programs and

Coverage

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Difference between Spiritual

Production and Material Production

Non-Perishing

Nature of Material

Production Versus

Repeated

Emerging and

Disappearing

Nature of Spiritual

Production

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The Need for Quantitative Repetition in

Media Programs and Coverage

Bottle Neck

Effect in

InformationGathering

When three men

say there is a tiger

in the street, theremust be one there.

Social Credibility

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Multi-Level Management Notion of Multi-Level Governance

Mixture Application of FourBasic

Mechanisms ofPower Delivering:

1. Command structure; 2. Market

approach; 3. Election system; 4.

Bargaining mechanism

Rule by Formulae and Regulations

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Human Resources

Management Talent and Vision

Technical Capable

and Fame

Publicity in

Showbiz

(Celebrity Effect) Reserve Sources

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Part Three: Media

Economics and Marketing Media Paradox and CommercialParadox

Two-player Negotiation over Divisionof Economic Surplus and DurableMonopoly

Magnifying Effect Theory Foreground Public Opinion and BadMoney Principle in Medias SocialPractices

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(1) Media Paradox and

Commercial Paradox Media Paradox refers

to a typicalphenomenon in mass

media development ininformation-over-saturation era thatnewly emerged massmedia do not replace or

substitute the old media,and the old and newmedia form a kind ofsupplement structure toeach other.

Commercial Paradoxstands for such thatscattered and isolated

shops dealing in thesame kind of goodsmake little profit whilewhen they flocktogether each and

every shop makesmoney. For mass media,the more the same kindof media, the moreincrease in viewer

rating and profit.

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Typical Example of Media

Paradox and CommercialParadox

In a total free media environment,

Broadsheet Media never seem to viawith Tabloid Media in market share

and profit earning.

Typical example of such paradoxphenomenon is the Times and the

Sun in UK, the former earns less

than 30% of the latter.

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Fundamental Reasons for such

Media and Commercial Paradox:

(1) Differences between Material

things to Spiritual things (2) Market Failure

(3) Shift of Value Focus: Comparison

of Education Function of Media toEntertaining Feature of Media

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(2) Two-player Negotiation over

Division of Economic Surplus and

Durable Monopoly Two-player

Negotiation overDivision of Economic

Surplus: a supplyconstriction designedto drive up the price

Durable Monopoly: bydestroying adequately

more supplies, theseller enables himselfto make a credible,take-it-or-leave-it offer

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Story of Two-player Negotiation over

Division of Economic Surplus and

Durable Monopoly An old witch came to the last king of the Romans

Tarquin, and offered to sell him nine books ofprophecy at an exorbitant price. Tarquin laughed

at the offer. The witch burned three of the books,and then offered to sell him the remaining six forthe original price. Tarquin refused again.

The witch burned three more books and offeredto sell Tarquin the three books that were left for

the original price that she had demanded for nine.This time Tarquin was scared that he might belosing something precious, and bought theremaining three books for the price that the witchasked.

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(3) Magnifying Effect Theory

Magnifying Effect of mass mediarefers to the fact that the implication

of the message in media coverageoverwhelms the fact. Implication ofthe fact is magnified while the fact

itself is ignored, swayed,misunderstood or in seriousshrinkage.

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Typical Social Practice of

Magnifying Effect of mass media

Examples of Magnifying Effect ofmass media are abundant. A

candidate calls for reduction ofgrammar school tuition fees, beingmagnified in media coverage, ismisunderstood as against building

more grammar schools, further,against increasing financial supportto education. This is typicalMagnifying Effect.

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(4) Foreground Public Opinion and

Bad Money Principle in Medias

Social Practices Foreground Public

Opinion: KahnemansProspect Theory

and the notion ofAcquiring andLosing

Bad MoneyPrinciple: Sir Thomas

GrashemsObservation BadMoney Drives GoodMoney out of Market

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Foreground Public Opinion

A Small Test about Information of

Same Essence Offered from Different

Angles of Acquiring and Losing

A Public Publicity Campaign about

Building a Hydraulic Dam to

Generate Electricity to Prevent LargeArea Blackout

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Bad Money

Principle

Typical Real

Examples ofBad Money

Principle in

Social Life

FundamentalOutcome aswell asFundamentalCure forBad MoneyPrinciple

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Thank you!

Training Centre, State

Administration of Radio,

Film and Television

June 2007 in Beijing