Outdoor Advertisement and Tv Advertisement Project Pricing Strategy Anaylisys of Dong Seng Ltd
|School||Shanghai Jiaotong University|
|Keywords||Dupont methodology advertisement pricing advertisement life cycle standard deviation evaluation system of thinking linear regression prediction|
With the constant development of economy and progress of technology, the ad medium in the advertisement business is also taking on irreversible and intensive changes. The four traditional ad media (TV ad, broadcast, newspaper ad and magazine ad) is continuously being lashed by the arising media forms. Under this background, however, Dong Seng Ltd still focuses on the traditional outdoor advertisement and TV advertisement business, which leads to a rapid slowdown of market occupation and an obvious dilemma in the advertisement income. The traditional pricing strategy and the pricing level are unable to meet current development situation.Traditionally, the pricing strategy is covered by the marketing management category. Finance management focuses on the setup of financial policy, policy execution as well as result analysis and control. With the maturation of business management philosophy, the finance management is growing to take on more responsibilities. Finance people should join the strategy setup for the business operation and enhance the communication with cross-function departments such as marketing, trade and strategy to ensure marketing operation compliance and maximize business profit. Gradually, by the work mentioned above, finance management is further embedded into the marketing operation to support by providing faithful and objective data and to promote by advising from the financial perspective.Hence, this thesis is going to elaborate the business operation and financial situation of Dong Sent Ltd as a case study by analysis of its finance data of recent years as well as by comparison of similar advertisement companies in the same business area. This thesis is going to adopt Dupont methodology to analyze Dong Seng’s deteriorating financial situation due to shrinking sales revenue and dig out the reasons why its current business mode is unable to meet the prevailing economy environment. Based on the result of many market researches and the combination of theories of marketing, finance forecast and statistics on the sales pricing issue, this thesis is going to create the pricing methodology by using four-dimensional evaluation system to adjust benchmark price and statistics function calculation, therefore, to set up more efficient sales pricing strategy in an aim to provide necessary theory and practice reference for those advertisement companies in the same business who are making or amending their pricing strategy.