Cnn - Service Marketing

Introduction

Cable News Network, commonly referred to by its initials CNN, is a major cable television network founded in 1980 by Ted Turner. The network is now owned by Time Warner; the news network is a division of the Turner Broadcasting System. The company has leveraged its strong stable of internationally recognized brands like CNN, Cartoon Network and TNT to generate incremental revenues. CNN’s main competitors in the US market include: NBC News and FOX News, who are also US based organisations offering the same or similar service (SWOT Analysis, Turner Broadcasting Systems, 2006).

CNN rates as America's number one cable news source. While the news network has numerous affiliates, CNN primarily broadcasts from its headquarters at the CNN Center in Atlanta, the Time Warner Center in New York City, and studios in Washington, DC. As of December 2004, the network is available in 88.2 million U.S. households and more than 890,000 American hotel rooms.

The main focus of CNN international is to bring top news stories from around the world. CNN introduced the idea of 24-hour television news coverage. Globally, CNN airs through CNN International and has combined branded networks and services that are available to more than 1.5 billion people in over 212 countries and territories. It has dedicated staffs in London and Hong Kong, working with colleagues in Atlanta, Georgia, and with bureaus world wide. CNN’s global news team consists of 4,000 news professionals (about CNN, 2007).

1.0 Core Supply & Facilitating Services

The main purpose of CNN is to primarily supply a news service to the US as well as Asia and Europe. The communication means chosen to supply this service include television, newspapers, magazines as well as the internet. The main areas covered in a daily news report produced by CNN international include: world news, world business, technology, entertainment, world sport and travel (about CNN).

The facilitating services provided by CNN include:

• CNN Anywhere- This is a service which provides customers with the ability to receive news updates while on the go. This service includes communication via: Mobile, email alerts, Desktop alerts, podcasts, PDA and RSS (Really simple syndication).

• Web facilities- Customers can view current as well as previous news events, as well as news videos, etc from the CNN achieves available via the CNN website.

• Language translation- CNN provides the news in a wide variety of languages, so it can be viewed by a large variety of cultures.

• Specific Topics- CNN also dedicates television shows and websites to specific news related areas, eg travel, money, etc (about CNN).

2.0 Target Market & Positioning

CNN has a very large worldwide market, which they target. Viewers above the age of ten, from all over the globe tune into CNN on a regular basis. These viewers tune into CNN from varied media channels. (McGraw 1996)

CNN has different customers when considering American and worldwide customers. In the USA, CNN can be viewed on free to air television. Therefore, customers can watch CNN without having to pay extra. In Australia for example, CNN can be only be viewed through a cable television network. This means that in order to view the CNN television channel in Australia, a customer would have to pay a monthly fee to their cable television provider. Due to this, it is much easier for CNN to attract an American audience, then it is to attract an international audience. (McGraw 1996)

CNN also provides customers with an internet website. This is a convenient alternative for people who either don’t have time, or who are financially unstable in terms of affording cable television. By having a cable television channel, and an internet website that can be accessed worldwide, therefore enables CNN to communicate with a larger worldwide target market. (McGraw 1996)

CNN is positioned extremely high amongst American television news networks. The company is extremely stable, in terms of its financial situation. CNN recorded a profit figure of slightly over $250 million at the end of the last financial year. Viewers are intrigued by CNN’s professional journalism, with over 400,000 viewers tuning into CNN on an average hourly basis. Therefore CNN is also very well positioned in terms of popularity. The two major competitors for CNN, who are positioned similarly are Fox News and the CBS network. Both companies record similar profits, and are also both quite popular. (McGraw 1996)

3.0 Customer Involvement

Performing a service involves assembling and delivering the output of a combination of physical facilities and mental or physical labour. One of the characteristics that makes services different is that customer has an involvement role as well as a consumption role on the service encounter. If the customer does not play their part, then the service quality may be jeopardised. (Phillip L. Dawes)

CNN itself is one of the leading news casts that empathise on their customer involvement since there is always fresh news and keeping their customers informed is a major priority. Due to the industry CNN is involved in where breaking news is always happening around us and CNN main goal would be to get that news to their customer data base, various techniques have been offered to their viewers in order to be up-to-date on news and headline. These include…

пÑ"? RSS Feeds: This stands for вЂ?Really Simple Syndication’ and by subscribing to it through the CNN website, you are then able to get the news delivered directly to your desktop

пÑ"? CNN Mobile: One of the biggest and main forms of communication used in today’s society, CNN has split this category into 3 different services in order to keep each consumer happy. These are…

• Browsable News: to access the latest breaking news, top stories, financial market updates, weather and more.

• SMS Breaking News Alert: staying up to date with CNN's breaking news SMS alerts, delivered direct to your mobile.

• Mobile TV: watch CNN International via your mobile 24 hours a day, 7 days a week.

пÑ"? Email Alerts: another option in order to receive