Marketing Mix of BBC and 7Ps (Updated 2024)

The Marketing mix of BBC analyses the 7Ps of BBC which includes the Product, Price, Place, Promotion, people, physical evidence and process of BBC. British Broadcasting Corporation (BBC) has been a massive name in broadcasting since the early 20s. The company is a public service broadcaster headquartered at Broadcasting House in London.  By public service broadcaster, we mean radio, television, and electronic media outlets that run with the sole public service motto. John Reith founded the company on October 18, 1922.

BBC is the largest broadcaster in the world today and has an employee strength of 35, 402 including part-time, flexible, and fixed contract staff. First, the company was established as a private company, but a lack of sustainable funds forced it to reorganize itself as a public corporation. Though operating for public service, some elements do operate for profits.

All organizations making use of the news from the BBC are required to pay an annual fee. It is also known as BBC World Service outside its home country, Britain.

BBC’s most prominent competitor is America’s Cable News Network (CNN).

About BBC

• Type: Public service broadcaster.
• Industry: Broadcasting.
• Founded: 18 October 1922, London, United Kingdom.
• Founders: John Reith, 1st Baron Reith, Government of the United Kingdom.
• Headquarters: London, United Kingdom.
• Area served: United Kingdom, Isle of Man, Crown Dependencies, and overseas territories.
• Current CEO: Tim Davie.
• Number of employees: Over 21,000
• Major products: Television, radio, and online content.

BBC Product Strategy

The divisions run different programs and services within each of the above categories. The television division manages the television channels and programs therein. For example, BBC Natural History and BBC Archives fall under the television division. The Radio division manages BBC Radio, including all music-related programs.  Future Media division is responsible for digital output online services like BBC Online, BBC Player, and technology-related research and development activities. BBC North Group oversees departments like BBC Sport, CBeebies and CBBC, and BBC Radio 5 Live. The division operates from Media City UK.

The new Product Mix of BBC in 2024 is as follows (Source).

1. Television Channels: The BBC operates multiple TV channels in the UK, including BBC One, BBC Two, BBC Three, BBC Four, CBBC (for children), CBeebies (for younger children), BBC News, and BBC Parliament. Each channel caters to different audiences and content preferences, offering a mix of news, drama, comedy, documentaries, and children’s programming.
2. Radio Stations: The corporation runs several national radio stations such as BBC Radio 1 (popular music), BBC Radio 2 (adult contemporary music and speech), BBC Radio 3 (classical music and arts), BBC Radio 4 (news, current affairs, and drama), and BBC Radio 5 Live (live news and sports commentary). It also operates digital stations like 1Xtra, 6 Music, and Asian Network, along with local radio stations across England and national stations in Scotland, Wales, and Northern Ireland.
3. Digital Services: The BBC provides a wide array of digital services, including its website, bbc.co.uk, which offers news, sports, weather, education, and entertainment content. BBC iPlayer is a crucial digital service allowing viewers to watch live TV and catch up on BBC programming online.
4. BBC Sounds: A digital platform that brings live and on-demand radio, music, and podcasts from the BBC.
5. BBC News Services: Besides its TV and radio news services, the BBC also offers online news through its website and mobile apps, providing local, national, and international news coverage.
6. BBC Studios: The commercial arm of the BBC that focuses on producing and distributing content. BBC Studios works globally, creating a wide range of content, including drama, comedy, factual, entertainment, and children’s programming.
7. Educational Resources: The BBC provides educational content through platforms like BBC Bitesize, which offers support and resources for students of all ages.
8. Events and Festivals: The BBC hosts and broadcasts live music and cultural events, including the BBC Proms, an annual classical music festival.
9. Publications: Although not as prominent as its other products, the BBC has been associated with publishing through partnerships, producing magazines, books, and educational materials related to its programming and services.
10. International Services: The BBC World Service broadcasts globally in English and many other languages, providing news, analysis, and information. BBC World News is the corporation’s commercially funded international news channel.

BBC Place Strategy

BBC headquarters is located in London. It houses most of its radio channels and also BBC News., BBC is in the process of making more programs outside London. The BBC North Project is initiated to achieve this goal, and there are plans to have production centers in Cardiff, Belfast, Glasgow, and Great Manchester. BBC Northern Ireland is a division outside of Britain.  It manages two TV channels- BBC One and BBC Two. It also manages two radio stations.

BBC Worldwide is a division of BBC. It is the main commercial arm and wholly owned subsidiary of BBC. Many of the popular channels, like BBC Earth, Cbeebies, and BBC Kids, to name a few, are run by BBC worldwide. The programs and distribution channels are available across the globe from the UK, North America, Australia, and New Zealand to other global markets like Asia, Central Europe, the Middle East and Africa, Northern Europe, Latin America, and Western Europe.

Here’s the place strategy of BBC.

1. Global Presence through Broadcasting and Online Platforms: The BBC operates worldwide, offering its television and radio services, including the BBC World Service, in multiple languages to audiences worldwide, accessible via traditional broadcasting, satellite, and online platforms.
2. Digital Accessibility via iPlayer and BBC Sounds: In the UK, the BBC enhances its place strategy by providing digital access to its content through the BBC iPlayer for TV programming and BBC Sounds for radio and audio content, enabling users to watch and listen live or catch up on-demand from anywhere with internet access.
3. Comprehensive Website and Mobile Applications: The BBC’s website and its suite of mobile apps for news, sports, weather, and education ensure its content is widely accessible on various devices, catering to users’ preferences for consuming content on the go.
4. Strategic Partnerships for International Distribution: The BBC leverages partnerships with other broadcasters and digital platforms worldwide to distribute its content internationally, ensuring that its television and radio services reach as broad an audience as possible outside the UK.
5. Physical Locations for Local Engagement: Domestically, the BBC operates numerous local radio stations and has major production bases in different parts of the UK, such as London, Salford, Glasgow, and Cardiff, facilitating local engagement and content relevance to diverse UK communities.

BBC Pricing Strategy

BBC works on a licensing system. A license must cover a person if he watches live TV while broadcast in the UK. Since its inception, BBC’s funding source has been through license fees.  Initially, the fee was for both television and radio, but since 1971, it has been modified to include only television. The license fee is fixed at 145.50 pounds until 2017.

The BBC’s pricing and marketing strategy is unique and multifaceted, reflecting its position as a public service broadcaster funded primarily through the TV license fee in the UK. Here’s an overview of its approach:

1. TV Licence Fee Model: The cornerstone of the BBC’s funding mechanism is the TV license fee, which is required from UK households that watch live television or use BBC iPlayer. This model allows the BBC to produce and deliver a wide range of content without the direct commercial pressures of advertising or subscription fees, ensuring the provision of high-quality, diverse programming accessible to all UK residents.
2. Value Proposition: The BBC’s value under this pricing strategy extends beyond mere content consumption. It includes access to various services across TV, radio, and online platforms, encompassing news, education, entertainment, and more. This comprehensive offering justifies the license fee, presenting it as a valuable investment in a wide-ranging public service.
3. Commercial Revenue for Global Content: Internationally, the BBC employs a different pricing strategy through its commercial arm, BBC Studios, which sells BBC content and formats globally. This includes syndication deals, content licensing, and subscriptions for BBC World News and the BBC World Service. The revenue generated supports the BBC’s public service mission and reduces reliance on UK license fees.
4. Strategic Content Partnerships and Collaborations: The BBC enters into strategic partnerships and collaborations with other media entities to further monetize its offerings and expand its reach. This includes joint ventures for new channels and streaming platforms, leveraging its rich content library. These partnerships enable the BBC to tap into additional revenue streams while providing its content to a broader audience.
5. Dynamic Response to Market Changes: The BBC continuously evaluates its pricing and funding mechanisms to align with technological advancements and changing consumer habits. This includes considering adjustments to the license fee model, exploring new digital platforms for content delivery, and adapting to the competitive landscape of streaming services. The organization’s commitment to public service and mandate for universal access guides these adjustments, ensuring that the BBC remains a vital and accessible resource for audiences in the UK and worldwide.

BBC Promotion Strategy

BBC cannot carry out any sales or advertising on its public services. This has been done to keep the broadcaster independent of commercial interests.

However, BBC World, for example, indulges in online marketing tactics like SEO and data analysis to keep websites like BBC Good Food on top of the game. At the same time, it also invests in majorly creative BTL advertising and some ATL advertising. Above is a beautiful ad from the campaign – BBC World now in America. This campaign showcased the responsibility of news channels to cover a story from both sides.

Some Recent Video ads and Print ads for BBC are:

BBC People Strategy

The “People” element of the Service Marketing Mix for the BBC plays a crucial role in its overall customer strategy and embodies the values, expertise, and diversity the organization represents. Here’s an insight into how the BBC approaches the “People” aspect:

1. Diverse and Skilled Workforce: The BBC is committed to fostering a diverse and inclusive workplace, recognizing that a wide range of perspectives and talents is essential for creating content that resonates with a global audience. The organization employs journalists, producers, technicians, digital experts, and administrative personnel, among others, ensuring high standards of professionalism and creativity across its services.
2. Investment in Talent Development: The BBC strongly emphasizes training and development, offering various programs to nurture the skills of its workforce. This includes leadership training, apprenticeships, and internships to develop the next generation of media professionals and ensure the organization remains at the forefront of industry innovations.
3. Editorial Excellence and Ethical Standards: People working for the BBC must adhere to the highest editorial and ethical standards, guided by the BBC’s Editorial Guidelines. This commitment to impartiality, accuracy, and fairness underpins the trust that audiences place in the BBC’s content, whether it’s news, entertainment, or educational material.
4. Audience Engagement and Feedback: The BBC recognizes the importance of its relationship with the audience, employing dedicated teams to manage viewer and listener feedback across multiple channels. This direct line of communication ensures that the BBC remains responsive to its audience’s needs and preferences, allowing for continuous improvement in service quality.
5. Leadership and Governance: The BBC’s leadership team and governance structures are pivotal in shaping its strategic direction and ensuring accountability. The BBC is governed by the BBC Board and regulated by Ofcom. The Board is responsible for setting the organization’s strategy, ensuring it fulfills its public service mission and financial sustainability. The diverse experience of its board members and senior management reflects a broad range of skills and knowledge, driving the BBC’s success in a competitive media landscape.

BBC Process Strategy

The “Process” element in the BBC’s Service Marketing Mix is critical in ensuring efficient delivery and management of its services. This encompasses the methods, systems, and procedures the BBC employs to create and distribute content, interact with its audience, and maintain its public service remit. Here’s how the BBC approaches the “Process” aspect:

1. Content Creation and Production: The BBC follows a rigorous process for content creation and production, which includes research, planning, scripting, filming, editing, and post-production. This process is supported by in-house teams and external partners, ensuring a blend of creativity, innovation, and editorial excellence. The BBC’s production process is designed to meet high-quality standards, reflecting its commitment to informative, educational, and entertaining content.
2. Content Scheduling and Distribution: The scheduling and distribution process is strategic, aiming to maximize audience reach and engagement across its TV channels, radio stations, and digital platforms like BBC iPlayer and BBC Sounds. The BBC uses audience insights and viewing data to inform scheduling decisions, ensuring a diverse and balanced content mix that caters to the varied interests of its audience.
3. Feedback and Complaints Management: The BBC has established clear audience feedback and complaints management processes. This includes online forms, contact centers, and social media channels, allowing the audience to share their views and concerns. The organization takes audience feedback seriously to inform content decisions and improve service quality.
4. Technology and Innovation: Integrating new technologies and digital innovations is central to the BBC’s strategy, enhancing content delivery and audience experience. This includes the development of the BBC iPlayer, advancements in streaming quality, and using AI and machine learning for content recommendation. The BBC invests in research and development to stay at the forefront of media technology trends.
5. Regulatory Compliance and Governance: The BBC operates within a regulatory compliance and governance framework, adhering to policies and standards set by regulatory bodies like Ofcom. This includes processes for ensuring content impartiality, protecting privacy, and upholding ethical standards. The BBC’s internal governance structures oversee these processes, ensuring accountability and transparency in its operations.

BBC Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix for the BBC encompasses the tangible and intangible elements that help make the service authentic and credible to its audience. Even though the BBC primarily operates in the digital and broadcast media sectors, where services are often intangible, physical evidence plays a crucial role in shaping public perception and trust in the brand. Here’s how the BBC approaches physical evidence:

1. Branding and Visual Identity: The BBC’s logo, visual style, and branding elements serve as key physical evidence of its presence and reputation. The consistency and visibility of its branding across platforms—whether on television, online, or in print—reinforce the BBC’s identity as a trusted and authoritative source of news and entertainment.
2. Broadcasting Infrastructure and Facilities: The BBC’s state-of-the-art studios, broadcasting centers, and offices, such as Broadcasting House in London and MediaCityUK in Salford, are significant physical manifestations of the organization. These facilities house the operations necessary for content creation and distribution and symbolize the BBC’s investment in technology and commitment to quality.
3. On-Screen and Online Presentation: The design and user experience of the BBC’s digital platforms, including its website and apps like BBC iPlayer and BBC Sounds, provide physical evidence of the brand’s dedication to accessibility and innovation. The professional presentation of content, along with the ease of navigation and quality of streaming, reinforces the BBC’s reputation for excellence.
4. Merchandise and Publications: Although a minor aspect of its operations, the BBC’s merchandise related to popular shows and its publications (such as books and magazines tied to programming) are tangible evidence of its cultural impact and reach. These items allow audiences to engage with the BBC’s content differently, extending its brand into people’s lives.
5. Public Events and Installations: The BBC’s involvement in public events, such as the BBC Proms, educational workshops, and public debates, offers physical proof of its engagement and investment in cultural and educational initiatives. These events, often open to the public, reinforce the BBC’s role as a public service broadcaster committed to enriching the cultural life of the UK and beyond.
6. Awards and Recognitions: The numerous awards and recognitions received by the BBC for its programming and innovation serve as crucial physical evidence of its quality and leadership in the media industry. Prominently featured in communications and marketing materials, these accolades help bolster the organization’s credibility and prestige.

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