The fate of newspaper publishing industry across the world and in Australia continues to be unknown. It is thus essential for the newspaper publishing industry to explore its macro environment and macro environment. The macro environment comprises aspects such as demographics, political, natural, economic, technological, and cultural surroundings (Rix 2004).
These elements create opportunities and threats for the industry as the industry may not be able to influence them directly. Conversely, the microenvironment comprises the industry’s competitors, suppliers and customers (Kotler et al. 2007). These elements denote the strengths and weaknesses of the industry. The industry has the capacity to influence activities in its micro environment.
External Environment
Demographic Environment
Demographic environment comprises segmentation according to aspects such as age, location and sex. Demographic segmentation enables the industry to succeed in formulating products and services that cater for the needs of customers.
Population
Australia has a population of about 33.4 million people. 13% of this population consists of persons aged above 65 years. The population of young people continues to decline due to lower infertility rates. Increased life expectancy and low rates of birth have led to a growth in the ageing population.
Most Australian industries, which publish newspapers, target population aged above 60 years. Since this segment has unique needs, these industries have to customize their products and services to match their requirements.
Level of Education
Presently, most people in Australia have degrees. This has augmented the use of technology in the country. Since advanced education has boosted awareness about the use of technology, the newspaper publishing industry has to adopt technological use in delivering their services.
Geographic Shifts
There is a shift in the Australian population due to change in living standards, retirements and distribution of jobs. Some people move from rural to urban areas, while others move from towns to suburbs. Industries should monitor these movements when formulating their marketing campaigns. The newspaper publishing industry can take advantage of this situation through distributing their products and services to remote regions.
Economic Environment
The economic environment comprises spending trends and income levels of customers. Other aspects, which affect the economic environment, include interest rates, inflation and employment. In Australia, levels of income are high, and the national disposable income is high.
Hence, spending patterns on household products and services in Australia are high. Australians also spend much on recreation activities. Some services that Australians use for recreation include internet services and mobile phones.
Hence, newspaper publishing industries in Australia must consider these consumer spending patterns while making marketing decisions.
Natural Environment
The entire world is facing problems due to damage of the natural environment. Marketers have to realize the significance of natural resources that they use in their activities. Industries must consider aspects such as water scarcity and greenhouse gas emission in their business activities.
In Australia, water, oil and coal are scarce resources. Hence, the Newspaper industry must invent environmental friendly methods of production, such as recycling used materials.
Technological Environment
Recent years have experienced much change in regard to technological changes. Presently, most people have access to the internet and other online services. Thus, the newspaper industry must use technology in designing innovative products so as to remain relevant in the market.
Also, the Australian government supports research and development, among industries, through providing grants and tax discounts. Hence, there are many opportunities for the growth of newspaper printing industries in Australia.
Political Environment
The political environment in Australia affects marketing decisions in the newspaper publishing company. This environment comprises government regulations and policies, pressure group and government agencies. Industries in Australia must conform to the Federal Practices Act. Ethics and social responsibility also obtain emphasis from different pressure groups.
Some areas, where government regulations influence newspaper publishing industries, include foreign ownership, environment, defamation and competition (Fitzpatrick 2012).
The Trade Practices Act of 1974 governs activities of media mergers. The Australian Competition Consumer Commission (ACCC) directs activities of mergers and defines the media market. ACCC considers advertisers and consumer choice in describing the media market.
The newspaper publishing industry gets affected by environmental laws on pollution. All key magazines and newspaper publishers in Australia belong to the Publishers National Environment Bureau. This body advocates for environmental aspects such as recycling used magazines and newspapers.
Presently, the restriction on foreign ownership of the metropolitan newspaper gets placed at the prudence of the Federal Government Treasurer. For instance, the foreign interests of up to 49.9% can be held in suburban and provincial newspapers, at the prudence of the Federal Treasurer.
Besides, there are laws relating to defamation, disapproval and limitations on circulating content that is obscene, profane or an agitation to racial abhorrence. Nearly all state governments have laws that govern registration, mostly to aid legal action in the occasion of actions for defamation.
Cultural Environment
Societies build beliefs and values, which parents convey to their children. Values and beliefs can affect decisions of Australian newspaper publishing industry. For instance, Australians believe in using the most cost effective ways to access information. Australians adopted this culture through watching Hollywood movies.
Hence, introduction of online media is likely to have adverse effects on use of print media. This is because online products and services are easier to access and more cost effective than products and services from print media.
Internal Environment
Competition
Competition in the Australian news publishing media consists of products and services from alternative media. These include independent online advertising sites, new digital TV websites, pay TV, social networking websites, internet TV, magazines, mobile phones, telemarketing and direct mail (Fitzpatrick 2012).
Emergence of online technology is more likely to influence consumption of metropolitan newspaper than suburban and regional newspapers.
Nevertheless, consumption of regional newspapers is likely to be influenced by increasing cases of internet penetration rates, availability of broadband, pay TV and free TV channels. These substitute forms of news have posed significant competition to the industry.
This is because efforts to shift newspaper readers to online news make the industry experience stiff competition, resulting to lowered print returns and profits. While newspaper operators have responded by sharing their services and products across the online editorial, online services do not offer many profits compared to newsprint publications.
Suppliers
The newspaper publishing industry in Australia has many suppliers who operate from different retail outlets. The industry also deploys news agents for distribution of magazines and newspapers.
Customers
Consumers of the industry’s products and services comprise of persons from all demographic segments. However, old people are the main demographic segment in the industry. This is because young people have shifted, from print, to online media. Thus, the industry has to create products that suit the needs of consumers.
References
Fitzpatrick, N 2012, IBIS world industry report C2421: newspaper printing or publishing in Australia, IBIS World Limited, South Melbourne.
Kotler, P, Brown, L, & Armstrong, G 2007, Marketing, Pearson Education, South Melbourne.
Rix, P 2004, Marketing: a practical approach, Mc Graw-Hill, North Ryde.