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 o...