Magazine is one of the media use to share information among the societies. In this technological era, people can read news article through Internet or watch it in television yet, People choose magazine because magazine classify their product with their market. Through this report I am going to talk about magazine industry growth and their marketing environment with some application in Tempo magazine.

Magazine industry

The magazine industry in this world is now become more competitive as now there are many magazine brands. By 2018 the global magazine publishing industry is anticipated to reach $106.9 billion income. But as the improvement in technology the industry is facing the threat where their customer shifting from printed media to digital media. So now advertiser are changing their method to reach more customer in the market.

Tempo is one of the magazines in Indonesia that focus in news and politics in Indonesia. On 1970 Mohamad & Yusril Djalinus founded tempo magazine and first published the magazine on March 6, 1971. During the New Order of President Suharto, Tempo magazine was banned as they said that Tempo is a thread to the national stability. During the Post New Order era Tempo magazine started publishing the magazine again and kept growing.

Tempo printed almost 180.000 exemplar for every edition and had 535.000 readers where 77% of them are male reader. Tempo has distributes their magazine into several city in Indonesia. Most of the distribution still targeting in Jakarta (45%) and Bogor, Tanggerang, and Bekasi (BOTABEK) (27%).

From the past three years we could see Tempo Indonesia Magazine grown well their net income trend is increasing from Rp 238,77 billion in 2011 and Rp 262,16 billion in 2013. Other than that, Tempo also has builds their own new building as shown from the total assets where it is increasing from year to year.

In the future Tempo goal is to improve the content in the magazine by keep using the go inves-tigative in every article they made and considering young reader with term go-younger. Tempo will create article that suit with teenage style as now there is an increasing in teenage politic participation.

Marketing Environment

Marketing environment is A complex series of factors derived from society that influence the effectiveness of the marketing mix in a range of ways (Dann & Dann, 2004, pp.44) As now most of the industries are in open system where they take the input for producing goods from external environment and send it out as an output to the external environment. Because the organization cannot control the external environment, Managers / owners must react and adapt to changes in their internal and external environment Njanja, Ogutu, & Pellisier. (2012). Marketing environment is divided into two categories, microenvironment and macro environment. In microenvironment factor there are 5 factors the company, suppliers, marketing intermediaries, competitors, and customers. The microenvironment affects the organization and other competitors in the same industry in short time. In macro environment there are 6 factors demographic, economic, natural resource, technological, political, and cultural forces. The macro environment factor affects the whole industry and other industries in long period of time.

Microenvironment

Microenvironment is the factor close to the company that affects its ability to serve its customers. Factors in microenvironment are the company, suppliers, marketing intermediaries, competitors, publics, and customers (Kotler & Armstrong, 2013, pp.66).

The company means when marketing department creating marketing strategies they need to work with other division to understand what consumer needs and creating customer value. When the budget allocation for marketing department increases they can advertise the magazine more often.

Suppliers are the one that provide the resources needed by the company to produce goods and services. Increasing in price of paper have increase the production cost for magazine industry in Indonesia as magazine industry use paper as their raw material to produce magazine.

Marketing intermediaries help the organization to promote, distribute, and sell their product to the customer. In magazine industry company do not directly sell the magazine to the customer but they use agent to help distribute the magazine to the customers. So for magazine company to increase their total sales they should have more agent so they can distribute the product into wider area.

Competitor is peoples that selling the same or different goods in the market. In magazine industry the competitors has increasing sharply from year to year. As we can see in Indonesia market there are 4 magazines that focusing in politics, business news. To get the market the organization will offer more advantages to the reader so they want to buy their magazine like lower price or more interesting topic.

Customers are group that has an actual or potential impact to the organizations ability to achieve its objectives this is the most important factor in the microenvironment, because the organization should satisfy what the customer wants. As people have different taste and needs that might changes over time. Organization needs to adopt with the changes by developing new product that would suit the current needs and wants.

Macro environment

Macro environment is the larger societal force that affects the microenvironment. Factors in macro environment are demographic, economic, natural, technological, political, and cultural. (Kotler & Armstrong, 2013, pp.66).

Demography is about the study of human population in the term of size, density, location, age, gender, race, occupation, and other statics.

Economic is about the factor that affect the customer purchasing power and spending patterns.

Natural environment is resource that use as the input for the marketers. Magazine industry use paper that came from the wood as their main resources. But now where the world-facing environment threat where the wood becomes limited. The magazine industry is changing from using printed media into electronic book. For example where Tempo launched e-book magazine to reduce the use of paper and to adopt with the trend.

Technological is the forces that help business to create, promote, deliver product easier and faster. Improvement in printing machine technology has helped the magazine industry to increase their production as now the industry can sold more magazine than before. But improvement in technology also force the magazine industry to changes their business strategy as now people tend to use mobile devices the magazine company also need to create the electronic book version of the magazine.

Political is government law and rules that affect the decision making in an organization.

Cultural is the forces that affect the customer values, perceptions, preferences, and behaviors. As in this recent years people are more concern with environment. Magazine industries react to this by trying to deliver the magazine through electronic book so customer can read the magazine from their devices and less paper used.

Key competitors

In the news, business and politics magazine segmented market in Indonesia tempo have several competitors such as Gatra, SWA, and Sindo weekly which producing magazine that focusing in

GatraGatra is a magazine first published in 1994 by Bob Hasan with 63.700 readers and circulation of 110.000 magazines printed every edition.

SWA SWA is a weekly business news magazine founded by Bakir hasan and Tempo magazine publisher in 1985, which was previously called Swasembada. SWA focusing their magazine base on research and fact. SWA has generates 200.844 readers and producing 51.900 exemplars for every edition they made.

Sindo weeklySindo weekly, which was named Trust before is one of the magazine owned by the MNC group, the magazine is first published in 2002 and changes their name in 2012. Sindo weekly printed 125.000 exemplars for every edition.

Indonesia Magazine Industry Positioning Map

From the positioning Map we divided the market between the price and the content of the magazine. Tempo magazine sold at the middle price where most of the content are political news. While Tempo competitor Gatra sold their magazine at the same price but their content mostly about business news. Gatra focusing their content same as Tempo magazine in politic news but sold their magazine at lower price than Tempo magazine.

References List

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Dann, S., & Dann, S. (2004). Core Marketing Elements. In Introduction to marketing. Milton, Qld.: Wiley.

Gabbott, M. (2004). Understanding value through segmentation and targeting. InIntroduction to marketing: A value exchange approach. Frenchs Forest, NSW: Pearson Prentice Hall.

Kotler, P., & Armstrong, G. (2013). Analyzing the Marketing Environment. InMarketing: An introduction(11th ed.). Upper Saddle River, N.J.: Pearson Education.

Laporan tahunan 2013 PT. Tempo Inti Media Tbk. (2013, January 1). Retrieved November 15, 2014, from http://korporat.tempo.co/uploads/tentang/823f04373999dbb92f7b5db16879ea17.pdf

Njanja, W., Ogutu, M., & Pellisier, R. (2012). The Effects of the external environment on internal management strategies within Micro, small and medium enterprises; Kenya Case.International Journal of Business and Management,vol.7(3).

Research and markets offers report: Global magazine publishing industry 2013-2018: Trends, profits and forecast analysis. (2013). Health & Beauty Close - Up, Retrieved from http://search.proquest.com/docview/1366171402?accountid=38628

SINDOMEDIA. (n.d.). Retrieved November 18, 2014, from http://mnc.co.id/businesses/sindomedia/en

Tentang Kami. (n.d.). Retrieved November 18, 2014, from http://www.gatra.com/tentang-kami.html