Which Segments Should XM Target? Essay Example

It is clear that XM appeals to all age groups, however, it is more popular among older generation that did not grow up on iPods and do not have time or skills to create their own content. At the same time, it is clear that the main competitor of XM, Sirius focuses its targeting campaign on 18-24 year old males. Identifying the underserved population should be the right approach for XM. Females and Hispanic listeners, as well as those who do not have a selection of radio channels at home, due to low coverage should be represent a segment that XM need to focus on. There is currently a gap in the market, and programs specifically designed  for these listeners would not cost as much as an NBA deal, while they would be extremely relevant to the target audiences. Therefore, the main focus of the marketing campaign should be the following market segments:

• Females aged 25-50
• Males aged 35-50 who travel for work
• Hispanics with a strong preference to relevant content aged 20-40

Identify XM’s marketing channels for each of the segments mentioned above. Specify objectives and tools of 1) push communications, 2) pull communications that you would suggest for XM.

In order to target females aged 25-50, XM should focus on online niche magazine advertising. The advantage of this strategy is that online media usually provides analytical statistics about their audience, therefore, targeting can be maximized. For pull strategy, the service provider should use well known feminist celebrities to hold talk shows on its channels.

Males who travel for work (aged 35-50)  and are not comfortable with creating their own music content should  be addressed through billboard advertising. The pull strategy should be focusing on sales industry magazine interviews and press releases.

The marketing communication focusing on Hispanic listeners should be based on the message of relevant content, and building relationships, as well as a sense of belonging. Similarly to targeting females, both pus hand pull campaigns should focus on online niche magazines. Creating a collaboration with magazines, such as Latina and the Hispanic Network Magazine, featuring advertising on the site, and interviewing contributors would create awareness within this niche market.