Xm The airwaves Marketing Research Research Paper

Ryan McKernan

Advertising 761

Tues. 7-9: forty five

XM Car radio Case Evaluation

1) Benefit Proposition – Seamless car radio coverage through the continental Usa. A wide variety of radio programming to fit listeners by different backgrounds and with different hearing interests. Marketplace – Equally male and feminine tech friendly, frequent car radio listeners. Grow older 25-40 years old. Depending on payment options profits may become important but most likely it is not extremely relevant as to who the early adopters will probably be.

2) To initially gain a large market share it would be aware of price low initially for basic services. The option of giving cheap ($5/Month) or Free of charge service and later charging intended for the initial recipient could help gain a large consumer bottom. Although this is a problem because revenue would be based majorly on advertising and marketing. Charging consumers for superior services ex: more stations or for many programming is actually a way of holding onto a large preliminary market share while creating even more revenue generating channels.

3)Allowing marketing on XM channels creates advertising revenue but likewise creates a new problem. By simply allowing promoting, XM can be not as distinguishable from FM radio which may provide customers the (why am I paying for this kind of attitude). This also details a competitive advantage that SIRUS might have over XM and might force consumers away. One advantage of enabling advertising is the fact it can decrease subscription costs for XM users and permit XM to offer service more affordable than SIRUS. Basically that divides the customer base into those who no longer care about price and only regarding programming (SIRUS) and those who also prefer satellite television radio above traditional a radio station but no longer want to shell out a lot of money for it (XM).

4)SIRUS definitely seems to be ahead of XM in capital generated and it is looking to gain a first to promote advantage. SIRUS is employing a business strategy that will not enable advertising on its channels and will basic its income mainly on consumer...

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