08-11-2016, 04:21 PM
Executive Summary:Evaluation of Market Readinessfor Radio AdvertisingEducation Program for WKLM
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WKLM, an FM radio station based in Bethany, Missouri, is a division of Great Tails
Broadcasting Corporation. Joe Taylor, general manager of WKLM, supervises a sales force of
six people, whose primary responsibility is to see various clients to advertise on WKLM. Joe
Taylor will be looking for information to direct him to improve methods and techniques, in order
to more effectively attract WKLM’ desired advertising clientele. He also wants to confirm his
perception that businesses don’t advertise on radio because they disbelieve radio’s ability to
deliver results for their advertising dollar.
For many years, WKLM has been considered a ‘teen’ station (serving 13 to 23 market
segment) by the public, competitors, clients, and radio listeners. On January 12, MMDDYY, in
order to attract the desired target market of 24 to 54 year olds, the station changed its
programming format while staying within the music category. The various reasons for this
change include:
· To satisfy the wants of this unsatisfied target market.
· To avoid intense competition for the teen segment.
· To attract the more established advertiser.
The advertisers which WKLM wishes to attract are those that would be directly
associated with the desired target market. Undesired advertisers would include those businesses
selling personal hygiene products, drug paraphernalia, or those dealing with controversial social
causes and life styles. WKLM also avoids advertisers of teen-oriented products and stores, and
businesses devoted to seniors.
When educating advertisers on the benefits of radio, presently two methods are used: (1)
various on-air advertisements that focus primarily on the general advantages of radio, and (2)
sales force presentations to potential radio advertisers.
Research Objectives
The nature of our research is descriptive, presenting information from current and
potential clients of WKLM.
Main Research Objective: To assist WKLM in designing an educational program that will be used
to enlarge the quantity and the quality of their advertisers, concentrating on determining which of
the different types of educational programs/components are most preferred and in which way
these educational programs should be presented.
The Methodology
The method best suited for our research objective, due to the flexibility and immediacy of
response, was a phone survey. WKLM provided the names and numbers of former, current, and
potential advertisers in the Bethany area. Numbers were verified using the current phone
directory.
A judgment sample (non-probability) sample was drawn from the indicated sample frames by
first eliminating those decision makers who could not be reached by phone during the data
collection period. Businesses that do not market to WKLM’s new target market were also
eliminated from the sample frame.
During the first three weeks in January, YY, one hundred eleven advertising decision makers
completed the phone survey.
Limitations
During data collection Bethany encountered a large snow storm which closed businesses and
made our sample more pressed for time and less willing to participate. Although WKLM’s
identity was disguised, it was impossible to disguise that the client was the likely radio station
sponsoring the research. This assumption may have biased the advertiser’s responses.
Because of the recency of the change in format, advertisers may have responded based on
their outdated perception of WKLM rather than the current reality. (The researcher was not made
aware of the former format until after the research was conducted; knowledge of the format was
assumed on the part of the client.).
In some instances (those businesses with national headquarters rather than local decision
makers), the actual advertising decision maker could not be contacted; a subordinate interviewed
might not have been as knowledgeable.
Conclusions and Recommendations
It is strongly indicated that the most preferred advertising medium to which advertisers would
like to direct their funds are newspaper and radio. The competitors of note for radio advertising
dollars are KFAM and WAZU, both with different formats and audiences. WKLM must
emphasize the differences, and superiorities, to these two stations, and in comparison to the city
and regional newspapers.
Since few decision makers thought they were knowledgeable about radio as an
advertising medium, we recommend that WKLM does conduct an educational campaign. The
most obvious changes need to come in the advertising fact sheet. This should be modified to (1)
include content that will improve the advertisers’ perception of radio as a good value for
reaching their particular audiences, (2) reeducate the decision makers about the changes in
programming and audience receptivity to those changes, and (3) demonstrate what the station has
changed to result in enhanced radio advertising creativity. Because of the importance to any
advertiser that a specific medium will reach their targeted audience, audience characteristics and
numbers must be documented before undertaking such an educational campaign. Focusing on
these categories of information will directly address decision makers’ major influences when
choosing a medium to advertise.
Advertisers did not have a clear perception of their desired target markets. This presents
an opportunity for WKLM in relation to an educational campaign. The market may be receptive
to learning more about targeting strategies overall, and this receptivity might make them more
willing to participate in an educational forum sponsored by the station. We recommend that any
forum take the more general approach of providing opportunities for advertisers to learn more
about how to make their marketing tactics more successful.