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formoviesgoingtobeshowninanewmarket,simplyknowtheaverageticketpricesofthepetitorsthereisfarfromenough.Strategically,itisnecessarytofindouthowmuchflexibilitythepetitorshaveinfurtherreducingtheprice.

3.1.4Diversification

Diversification,whichistooffernewproductstonewmarkets,isthemostriskyoneinallofthefourdirections,althoughtherearehighestprofitsandpotentialreturnsaswell.Toavoidtheriskstothegreatestextent,firstly,itisnecessarytounderstandwellaboutthenewmarkets,ontheotherhand,toidentifythepetitiveadvantagesandmarketpositioningofthenewproductsalsocannotbeneglectedwhenenteringthenewmarkets.Inordertofurtherdevelopforeignmarkets,China’sfilmindustryshouldcontinuouslymakecontributionstotheproductionofnewtypesofmovieswithsignificantChinesefeatures.However,itisimportanttoensurethatthesemoviescanbeacceptedbytheaudiencesinthenewmarketsbecauseofthedifferencesofculturalbackgroundsaswellasartisticvalues.“Marketingrepresentstheboundarybetweenthemarketplaceandthepany,andknowledgeofcurrentandemergingtrendsinthemarketplaceisextremelyimportantinanystrategicplanningexercise”.

3.2MarketingMix

Marketingmixcanbedefinedas“thesetofcontrollable,tacticalmarketingtoolsthatthefirmblendstoproducetheresponseitwantsinthetargetmarket”.Itconsistsofeveryelementthatafirmoranindustrycanapplytoinfluencethedemandofitsproduct:product,price,promotion,place,people,processandphysicalevidence.Withthepurposetooccupydomesticmarketwiththelargestportion,China’sfilmindustryshouldtakestepstoreformthemarketingprocesstocatertothemarkettrends.Generallyspeaking,thestepscanbecarriedoutaccordingtothesefourelements:product,price,promotionandplace.

3.2.1Product

“Productsarethefocalpointbywhichpaniesseektosatisfycustomers’needs”.ItisatruththatChina’sfilmindustryshouldbearinmindinthedevelopmentnomatterindomesticmarketoroverseas.“Productspriseplexbundlesofattributeswhichmustbetranslatedintobenefitsforcustomers”,andthereisnoexceptionforthespecialculturalproductssuchasmovies.InnowadaysChina,audiencesnormallyhavehigherexpectationsonthemoviestheychoosethaneverbefore,nomatterwhattypesofthemoviesare.Theynotonlyseekforsatisfactionsafterseeingamovie,butalsootherdeepsensationssuchasexcitement,beingtouchedordisgust.Forexample,audiencesanticipatestoseekongfumoviesorsciencefictionmovieswithamassofadvancedputertechnologieswhichcanmakethescenesmoreattractive,themovieswithfascinatingplots,orathought-provokingsubjectthatcanmakepeoplestarttothinkaboutsomeseriousproblemsthatexistinginthesocietyafterwards.Inthisrespect,Chinesefilm-makersshouldmakeeffortstotheutmosttoenhancethequalityofthemoviestosatisfysuchdemandsoftheaudiences.


3.2.2Price

Asanoversuppliedproduct,itisdifficultforChinesemoviestoattractmoreandmoreaudiencesastherearemanyotherchoicesfromforeigncountriesexistingincurrentChina’sfilmmarket.Therefore,theremustbeagoodreasonfortheaudiencestochooseChinesemoviesinsteadoftheforeignoneswhicharegraduallyoccupyingalargeportioninChina’sfilmmarket.ToofferalowerpriceisagoodwaytoincreasethepetitiveedgeofChinesemovies.“Oneofthesolutionstoencouragetrialisbyofferingpriceswhicharesufficientlylowthatalargenumberofbuyerswillswitchfromtheirexistingsupplier”.Basically,thePerationPricingStrategycanbeadoptedtohelpChinesemoviestowinmoremarketshareinthepetitionwithforeignculturalproducts.Besidesthepetitiveprice,offeringdiscountsonspecialfestivals,regularcouponsaswellasfreeauxiliaryproductssuchaspostersorDVDscanalsoattracttheaudiences.Forinstance,theSpringFestivalisthemostimportantfestivalinChina.Peoplealwaysgettogetherwiththeirfamiliesatthattimeandhavevariousentertainmentsforcelebration.Togotothecinemaisonepopularoptionthatmanypeopleprefer.InordertoattractmoreaudiencestochooseChinesemovies,filmenterprisescanofferabigdiscountontheticketpricewithconcessionssuchasbuyoneticketandgetthesecondonehalfoff.

3.2.3Promotion

AccordingtoPalmer,“therealityofmostmarketsisfiercepetitionbetweensuppliersinwhicheachsupplierhastomunicatetopotentialbuyerstheuniquebenefitsofbuyingitsproductsratherthanthepetitor’s”.Inordertoobtainthebestresultinthepromotionprocess,itismoreeffectiveforChina’sfilmindustrytoapplythe“Pull”promotionalstrategyratherthanthe“Push”,forChinaisalargecountryinitsterritoryarea.Forexample,filmenterprisesanddistributorscanputadvertisementsonthebest-sellingnewspapersandmagazinesonanintensivebasisbeforeanewmovieisgoingtobeshowninthecinema.Besides,toholdpublicactivitiesinweekendsorholidaysisanotherpopularwaytopromoteamovie.Inaddition,topromotemoviesontheInterisgraduallybeingasignificantmethodnowadays.Inthe“1990s,theInterhasevolvedintoalowcostmassmunicationmediumthatempowersalmostanyonetopublishtexts,movingpictures,music,etcinstantly”.TheInterallowspeo

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