XM Satellite Radio Competing in the New Digital World (Advertising)

Case study on XM Satellite radio advertising Name: Institution: Date: Discussion Questions Which competitors should XM be focusing on in the future: Sirius, terrestrial radio, or emerging/explosive growth technologies such as MP3 players, podcasts, and Internet radio? XM should mostly be focusing on Sirius, as this is the main competitor, in the satellite radio industry and presents the greatest threat to expanding the market base. The similarity between the two in terms of pricing and the content of the programs means that consumers can easily choose the better alternative between the two. In addition, Sirius has resulted to aggressive advertising leading widespread coverage in the mass media (Greenwald, 2005). Sirius already has a sizeable market share of satellite radio, but since the market has less competition from other brands focusing on Sirius is the most viable option. However, XM should also seek to increase her competitiveness through the internet, as podcasts can be available anywhere with access to the internet. Should XM try to appeal to all demographic groups or target specific segments? If the latter, which segments should they target and why? What types of advertising and promotion tactics can be used to market XM to these market segments? For XM, targeting specific market segments is a viable option, because there is an analysis of different market niche markets based on there age. This would ensure that thy have a stronger consumer base in thee markets as well as broaden there appeal to other segments. Other markets include home based listeners and car radio listeners. Car based listening occurs more often than home listening and advertisement to this segment would most likely lead to an increase in the popularity of XM (Greenwald, 2005). However, the marketing strategies of XM should also include home consumers where there are different niche markets including young people, older citizens, Hispanic, African American and other segments can chose from the channels available. Young adults are a growing demographic group, advertising television through renowned artists and featuring popular songs. Promotion could better be enhanced through special offers to customers who pay upfront or are first time listeners of XM. What are XM’s options for their advertising creative strategy? Should they focus on their content and programming, digital sound quality, ease of use versus the other alternatives, their innovative hardware, or a combination of these features and attributes? The creative strategy to be employed will target young adults, with the main message being that it is the better option with the right content. This will be facilitated by the placement of ads in the traditional media, especially in televisions, but this will also extend to the use of social networking sites. In addition, the advertisement will lay emphasis on the ease of use in navigating the contents, focus on programming, supplemented by appropriate hardware. With rapid technological advancement, the branding of XM seeks to appeal to the young people through targeted advertisements, which show reasons as to why XM offers superior quality to young adults, through diverse ads. Are there any other sampling or promotional programs that XM should pursue to attract new subscribers a...