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Satellite Radio Marketing Plan

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I am writing a paper about the new merger between XM Radio and Satellite Radio. I need to come up with a marketing plan and I am having some problems with the following areas. I am supposed to be a CEO/CMO.

1. Who uses our product and how do we create value? how is it measureable?
2. What is the life time value of our customers. What can we do in terms of customer acquisition and retention?
3. What is our Net Marketing Contribution and each of its components?
4. How do adoption forces, both customer and product, affect the adoption rate for our services? What can we do about them?
5. Should we keep the Sirius brand? Or XM? Combine them? Launch a completely new one?
6. What should the price be? and should we do add ons.

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Solution Summary

I am writing a paper about the new merger between XM Radio and Satellite Radio.

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1. Who uses our product and how do we create value? how is it measurable?

The user of company's product, ie, satellite radio are those passionate listeners of radio who want to enjoy commercial free and non stop radio channels. In other words, the primary users of our product are radio lovers or loyal listeners of radio who want an enhanced and better radio entertainment not provided by traditional radio channels. As most of the revenues of companies like XM comes from pre installed radios in cars, the product is predominantly used by males between the age of 18-45, who are always on the move. However, company should also target other potential users, such as home users.

We, as manufacturers of satellite radio, create value by providing our customers an enhanced and better radio listening experience. Such enhanced, better and improved radio listening experience comes from the commercial free and non-stop radio channels offered by our company. Further, the voice quality is crystal clear and CD like, which makes it more appealing to customers and deliver a better value proposition.

Such value creation can be measured by evaluating the enhancement in revenues and profitability of the company, as indicated by the growth in the number of subscribers of the satellite radio service. Further, extensive market research can be conducted to ascertain the satisfaction levels of the subscribers of the company's service in terms of meeting their expectation, needs and wants from the purchase of the product.

2. What is the life time value of our customers. What can we do in terms of customer acquisition and retention?

The life time value of satellite radio service customers can be calculated by multiplying the monthly/annual subscriber fees collected from consumers with total number of expected months/years the consumer is expected to remain in service, say 5-7 years or even more, ...

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