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Understanding integration and our marketing strategy By sean welsh

Given how we were tasked with creating a multi-media advertising campaign it was vital to understand how company integration worked, the difference between vertical and horizontal and to establish our plan for our marketing campaign.

Horizontal integration

Horizontal integration, also known as lateral integration, is the merging of two or more companies at the same level and point in the production process in the same or different industries. If the products offered by the companies are the same or similar, it is a merger of competitors. If all of the producers of a particular media text to were to merge, it would result in the creation of a monopoly. If enough companies conducted a horizontal integration so that only a few competitors remained, it would be considered an oligopoly. There are a number of advantages and disadvantages of horizontal integration, advantages include better business security, increased market power and influence as well as the reduction in costs as they no longer spend money trying to compete with rivals as they're no longer rivals as well as the fact that international costs can be reduced by delegating to parters in foreign markets. However some disadvantages include the fact that sometimes mergers don't create the levels of synergy that was expected and rather than straighten the parties involved they weaken them and destroy their value. There is also the fact that should they be very successful they'd create either a monopoly or an oligopoly, both of which are illegal in USA which is the largest market in the media spectrum making them risky business models for production and distribution companies.

An example of film institutions using the horizontal business model is Disney's acquisition of Pixar Studios. At the time Disney were facing market saturation with its current operations and were looking for ways to expand and increase profits. Pixar Studios operated in the same space as Disney, but it had more cutting-edge technology when it came to digitally animated movies. To grow its market share, strengthen its product line, reduce its competition and access new markets, Disney acquired Pixar Studios in 2006.

Vertical integration

Vertical integration is a strategy where a company expands its business operations into different aspects of the same production sector, I.e. when a manufacturer owns its supplier and/or distributor. Vertical integration occurs when a company assumes control over several production or distribution steps involved in the creation of its product or service. Advantages of vertical integration are that it can help companies reduce costs and improve efficiency as if production and distribution companies share the same parent company they will understand what they're goals are from the beginning and can create a far more effective and professional advertising campaign. However, sometimes it is more effective for a company to rely on the established expertise and economies of scale of other vendors rather than trying to become vertically integrated as they may end up making basic errors that will turn out to be very costly due to nothing more than a lack of experience and expertise. A great example of vertical integration in the media sector is Comcast. Comcast owns and operates the Xfinity cable/telecommunications service, over-the-air national broadcast network channels (NBC and Telemundo), multiple cable-only channels (including MSNBC, CNBC, USA Network, NBCSN, E!, among others), the film production studio Universal Pictures, and Universal Parks & Resorts in Los Angeles, California; Orlando, Florida; and Osaka, Japan and many more media distribution and production companies.

Our Marketing Campaign

In order to successfully advertise out original Neo-Noir text Blackout we created a multi-media marketing campaign that is made up of a teaser trailer, film poster and a Sight and Sound magazine cover. We used the trailer and poster as normal tools of advertisement, conforming to the conventions of said texts and being focused on appealing to and attracting our target audience with there being convergence throughout linking both to one another. We used the Sight and Sound cover slightly differently, focusing on a different target audience, in this case the readers of Sight and Sound, and then using synergy to advertise Blackout whilst still being typical of the Sight and Sound format. Our marketing campaign heavily relied on convergence and simbiotics across all through media texts in order to be successful and professional which I believe it was.

Credits:

Created with images by geralt - "block chain handshake shaking hands"

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