XM Satellite Radio
XM’s Satellite radio, a technology providing a thorough new way to listen to radio, has made use of advanced satellite adequacies and details global receiver architecture, which delivers a wide multitude of high quality radio programming nationwide. A distribution network was designed for this system. This network consisted of two satellites and a transmitter facility. Developing a marketing strategy for this new technology required several decisions that the company needed to make to finalize their business plan.
Should they place emphasis on charging customers a monthly subscription? Should they rely on advertisements to earn revenue? To address this issue XM’s management team took into consideration the value that they could introduce for different consumer sectors. Aside from a business model being chosen, high unknown and high-risk technology need to be considered, as well, in the need to analyze the best approach and leveraging manufacturer and channel partners.
Adults ages 25-50, satellite radio’s primary target market, are customers who make a substantial amount of money and are willing to pay extra for quality entertainment service. These targets include: Business travelers, truck drivers, RV owners, commuters, and workplace listeners.
Global radio, offering a limited selection, has become increasingly overcrowded with commercials. XM satellite radio’s benefit proposal for their customers is their ability to provide service throughout the country regardless of the location. They provide an abundant, commercial free, selection of radio for the assorted desires of consumers. Listening online from home or the office is an added bonus for subscribers.
XM should focus their target market on the Tech Seekers characteristics and statistics of human population. It appeared to present great opportunities for for penetrating the market. Because consumers desire being on that cutting edge of technology they would have the...