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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