SWOT Analysis of WKLM Radio - Case Study Example

Name: Task: Tutor: Date: Business research methodology Executive summary Due to high competition in the market, WKLM, an FM radio station based in Bethany, has launched a new program so as to attract the desired target market of 24 to 54 year-olds and will also attract advertisers in the market. This latest program will build the station’s image and position WKLM, an FM radio station as the leading radio station in Bethany. Although the WKLM has loyal customers, their high prices as compared with its competitors have become a major threat to their performance. WKLM should adopt new strategies on how to respond to high competition in the market and also to maintain their position as a market leader. There are some strategies that company should adopt in order to remain competitive. One of those strategies include the educational campaign so as to increase awareness in the market about the new program and train its employees so that they can offer quality services to the customers, increase promotions so as to attract attention of the advertisers in the targeted market, add more boosters so that the station can be heard all over the country and introduce new technology i.e. broadcasting life on the internet. Background WKLM is an FM radio station carrying out broadcasting services in Bethany. Joe Taylor is the general manager of WKLM whose main business is to contact and supervise sale-force of 6 people who are marketing the station to their target market segment they serve. The general manager has introduced new marketing strategies aim at attracting potential advertising clientele in the market. The main challenge facing the general manager in his efforts of attracting advertising clientele in the market is changing the perception of the clients that the radio is not appropriate medium of delivering results for their advertising dollar. The reason for this negative attitude in many clients is that WKLM has been considered a ‘teen’ station (serving 13 to 23 market segment) and therefore, most of the target segment do not listen to the station. Due to this negative perception, the management of WKLM has changed its programming format though they will maintain the music category. This is expected to improve the performance of the station and attract new customers in the market. This strategy is also expected to reduce competition in the teen segment and attract more established advertisers. Furthermore, the company is planning to educate advertisers on the benefits of radio advertisement so as to influence them to use the radio as their advertising medium. The company has adopted two methods of conducting this educational program which include the use of in air advertisements that focus mainly on the main advantages of radio, and sales force presentations to potential radio advertisers. Research design The company used qualitative research design to conduct the market research so as to obtain the reasons as to why most people are not making their advertisement through radio. The main objective of the research was to find out the real nature and attitudes of people toward radio. Advantages of qualitative research The company had preferred the method because the research to be carried out was too difficult to be answered by simple yes or no assumption. The researchers needed to establish the customers’ attitudes toward radio advertising. The method was also favored by the company because it is simple to plan and to be implemented. The method is also effective and reliable because information can be generated by taking a small portion of the whole targeted market and be interviewed. Sampling method The sampling method used by the company to carry out its research is Judgment sampling. This sampling method can also be referred to as non probability method. The company had selected this method because it is simple to carry out the research since the researcher can decide to draw the whole sample from one “advertising dollar" business people, even though the target includes all advertising clientele. For this method to be effective, the research should ensure that the chosen advertising clientele is truly representative of the target market. Advantages of Judgment sampling The main advantage of this method is that the cost of sampling is very low as compared to other methods of sampling such as cluster sampling. This method is very important because it require less time for research to be completed. Besides, the method is reliable since the people giving the data are among the target customers in the field. Finally, the method is effective for pre-testing instruments like questionnaires. Disadvantages of Judgment sampling There are various advantages associated Judgment sampling. Some of these limitations comprise of the possibilities of selecting an advertising clientele who may not represent the entire advertising agencies. It is also possible for the company to select the advertising clientele who may distort the result. Data analysis methods The company uses a logical analysis/matrix analysis method to collect the data in the market. This method embraces the use of flow charts and diagrams to find the percentage of people who are currently advertising on the radio and those who are not. The following diagram shows the sample of data analysis of people who are advertising on the radio. . Limitations Researchers had various problems while in the field, some of the problems was unstable weather conditions making it impossible to collect relevant data because it was difficult to access the target people in the market. Most of the people found in the field were not ready to be interviewed. Some of the interviewees disguised WKLM identity making the whole process to be impossible. The other problem is that the researchers were not aware of the latest changes in the station, they thought the company was still targeting people of ages 13 to 23 market segment. Furthermore, large businesses with national headquarters rather than local decision makers were difficult to be contacted because the junior employees had no authority to give out company’s information nor do they understand how the business operates. From the check list below, it indicates that newspaper advertisement was popular among the business people who are making the advertisement. This medium was favoured because they are affordable and can be access any ware unlike the radio which requires you to sit down and listen to it. Since the advertisements are made by businesses it means that this advertisement targets other small business in the market. Furthermore, the advertisement can be retained for future reference unlike the radio whose effect is determined by the person listening to it. There are some of the possible reasons as to why business men and women prefer newspaper advertisement than the radio advertisement. Because of this, the general manager of WKLM should market their radio station by convincing the business people that the radio station reaches most parts of the country. The manager should make it known that they have expanded their program which has encouraged many people from different classes to listening to the station. However, some portion of those businesses currently advertising is developing confidence on the radio and there are possibilities that they will use radio as medium of making their advertisement in future. According to the research, it shows that there are people who are not aware or have no knowledge of radio as advertising medium. This might be another reason as to why businesses are not making their advertisement through the radio. The company should take a step and educate people on the importance and effectiveness of the radio when used as an advertising media. Such programs will be effective if the company train its marketers on how to convince the customers to believe that radio is a reliable medium. Some of the reasons why most businesses do not use radio as a means of advertising are that the businesses making advertisement feel that radio is too expensive for their business and that they prefer other medium such as newspapers. Others believe that radio is not as effective as other media. To change this negative perception, the company should need to carryout educational campaigned According to the report prepared by the researchers it shows that the WKLM is facing high competition in the market. They are many radio stations in the country providing the same services. A close competitor of WKLM radio station is the KFAM. It has increased its popularity because of their high marketing strategies in the market. WAZU is also another station which is gaining popularity at higher rate. Marketing department of WKLM radio station should develop new strategies so that they can maintain its leadership position in the market. Some of the effective strategies which can improve performance of WKLM radio station is training the employees and emphasising on need of employing talented employees so as to attract more listeners. Broadcasting industry needs talented people who can attract more listeners which will eventually attract the advertisers. SWOT Analysis Strength WKLM is a well-known leading radio station offering various services such as advertising services WKLM has been in a position to sustain its market because of their quality service WKLM has well experienced and talented presenters enabling the station to gain competitive advantage in the market WKLM use advanced technology making their program attractive to many audiences WKLM has developed a positive relationship with it advertiser and other business people Weaknesses The company depends so much on a minor market segment know as ‘teen’ station (serving 13 to 23 market segment) The competitors such as KFAM and WAZU was in a position of offering there services at a lower price because of their economies of scale Opportunities The increased number of advertisers in the market due to increasing business activities The station is well know and their new program will attract more customers The company has adopted the latest technology and talented presenters making the radio station more attractive. Threats High competition in the market especially other radio station such as KFAM and WAZU New entrants in to the industry causing competition Rising cost of production in the market e.g. carrying out market research and developing new program so as to attract more advertisers. Recommendation According to research carried out by the marketing department of the WKLM radio station, it shows that most advertisers prefer to advertise their products through the newspaper because they believe that newspaper is the cheapest when compared to other media such as TV and radio. However, there are those who prefer radio as a medium of advertisement and others was promising that they will consider investing in radio advertisement in future. The company should develop effective strategies so that they can compete effectively with the competitors in the market. Some of the competitors of the WKLM Radio Station include KFAM and WAZU. Furthermore, the researchers found out that competitor such as WAZU was gaining popularity because of their strategies of lowering prices and also serving a wider market. Because of high competition in the market and ignorance of advertisers concerning the advantages of using radio, I therefore recommend that the WKLM should conduct an educational campaign so that they can teach business people on the advantages of using radio as a medium of making advertisement. They should also strategise on how to change the perception of the advertiser toward radio advertisement and inform them about the fact that radio covers a wide area thus reaching many audiences in the market. Besides, they should inform their target market about their expansion strategy which has been implemented. They should do this by re-educating the decision makers from various companies about the company’s new strategies. Finally they should demonstrate what the company has done and the expected improvement in their performances. They should inform the business that the company is adoption these changes so that they enhanced radio advertising creativity. Conclusion The human resource manager should ensure that the people or employees who will be responsible in the implementation of the program are trained on how to carry out the program. It is important to train the employees so that they can be in position to offer quality services to the customers. Also, the company should segment its market effectively and select the segment which is profitable to be served. 3. Prepare 10-minute oral presentation (power point) of the report. * Find this presentation on the next document. Works Cited Bryman, A. 2007.Business research methods. Oxford University Press, (2). Pp 425-467 Read More