Structure

f
13.0 Introduction

13.3 Marketing
13.3.1 The Meanine of Marketing

13.4 Marketing of FM Radio: The Strategies

13.5 Product: Programme Mix
13.6 Promotion
13.7 Price
13.8 The Audience: Listeners and Perceptions
13.9 Let Us Sum Up
13.10 Check Your Progress: Possible Answers

The purpose of producing a product is its sale. Each producer explores ways and means
of marketing the product and maximise sales and in this, advertising plays a major role.
Radio is one of the major media for advertising. With the growth and expansion of media
i opportunities, radio has to compete with other media for its share of advertisement pie.

Earlier All India Radio had a mono~olvin the area of broadcasting. Its broadcasts have been

-
the channel which is much talked about these days. Many private companies have taken to
commercial broadcasting and there is fierce competition to capture audience with alluring
programmes. Marketing holds great importance in such a competitive scenario.
F
i In this unit, we shall examine the concept of marketing and how it is applied to devising
marketing strategies of commercial FM radio channels of AIR and private companies.

After reading this unit, you will be able to:

describe the growth of commercial broadcasting;
define marketing and marketing concepts; and
analyse the marketing of FM radio.

13.2 COMMERCIAL BROADCASTING

You $ave read in Unit 11 that Public Service Broadcasting, like the BBC, does not accept
commercial advertisements. This policy was adopted by All India Radio for quite some time.
However, the Government accepting a recommendation of the Chanda Committee introduced
commercial broadcasting in a limited way in its Vividh Bharati service in the late nineteen
seventies. But the reach of Vividh Bharati was limited and it was realised that the primary
channels of AIR which carry public service programmes must also carry advertisements
so that their reach is expanded. This was done in two phases. The first phase covered
entertainment and rural programmes while in the second phase, other programmes,
except devotional music, were also included.
Radio Management Although FM radio is in operation in India since the decade of the nineteen seventies, it was
And Marketing
the metro FM by private operators that gave a distinct niche to FM. So much so that now
many analysts take FM radio as a different genre in itself. The style, format, content and the
personality of Radio Jockeys (RJs) positioned it as a medium for the youth. Radio FM over
the years has become the choice of more and more young listeners who also include the
mobile population - those switching it on in their motor vehicles.
I
It was in 1993 that the Ministry of Information and Broadcasting allowed private firms to get
blocks/chunks of time, prepare programme content, book advertisements and broadcast on
AIR FM channel on the payment of a licence fee. The programmes became popular and as
per industry estimates, within four years, advertising and sponsorship business grew manifold,
rising to Rs 93 crores in 1997-98. However, the private firms made a case that the licence fee
was high and got a drastic reduction of the fee.

The FM companies pay a large sum of money to the Government as licence fee. Their
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operating expenses are also substantial. FM companies have invested money expecting
a return on capital which can be secured only through advertisements. Already, there are
several players in the media, including the press, television, cable television etc. Each FM
channel has to establish its popularity with listeners to convince the advertisers that their FM
is the channel for advertising products and services. And this need for generation of ad
revenue has stepped up the need for marketing.

Based on the experience gained, the Prasar Bharati and the Government dec~dednot to renew ,
the contract of the private players. The expectation of FM stations to be revenue earner was
high. However, the FM channel which AIR continued to operate did not attract as many ads
or sponsorship as expected. This, however, did not dampen the spirit of either the government ,
or the industry. The government decided to auction licences for 148 new FM stations all over
the country and expected to collect Rs 80 crorGs from auctioning 108 licences. However, it
faced mass withdrawal of the bidders who were around when auctioning of FM radio took
place in the year 2000. The industry spokespersons argue that non-serious players entered the
fray at th? cost of those who chose to operate while those who surrendered attribute the reason ,
to non-viability.

Out of the 148 new FM stations announced across 40 cities, forty frequencies have been
reserved for educational radio to be operated by the Ministry of Human Resource Development.

Listeners in some of the metros and other places tasted the variety in programmes when some 1
of the private players started broadcasting from the year 2001. The availability of so many
channels provided great opportunity for operators and advertisers. According to market
watchers, FM's growth would depend on traditional advertisers who use radio as a reminder
medium. Because of high speed of production, more and more advertisers see good potential
in advertising in FM. As most of the private FM players own cross media, these come in
handy for publicising the FM station e.g. Times of India group publications publicise Radio
Mirchi, Star TV publicises Radio City and so on.

The response from major corporate sector organisations and multinationals has been quite
enthusiastic for advertising on FM. Companies like Maruti Udyog, Hutch, Seagram, Ranbaxy,
HLL, Motorola, Dr. Morepen, Ansal Builders, and local advertisers like Sirs and Hers and
Fortune Cookies in Mumbai have been advertising over FM. In Delhi, some of the more
visible advertisers include: Tanishq, Heinz Ketchup, Surf, PSI (AIDS campaign). Others
include coaching institutes like the IITjees, publishers promoting Harry Potter books etc.

According to industry sources, ads for programmes like 'Morning Drive Time', 'Temperature
Check, and 'Traffic Beat' are sold months in advance. Motorola, an aggressive advertiser in
Murnbai FM plans to replicate its strategy in Delhi also. Similarly, Dr. Morepen has also been
using radio vigorously. Liberty Shoes prefers the 'tried and time tested' Vividh Bharati, Delhi
FM I and FM 2. There are others who are still waiting and watching the growth and efficacy
of FM as an advertising medium.

As the reach of any FM stations is limited and local in nature, it is expected to be a good
medium for local advertisers, especially retail outlets, if the tariffs are rationalised. Analysts
point out the cheaper tdffslon some of the music channels on television against the current
ad tariffs of private FMkYations. They feel that the share of radio is limited by the medium's
current delivery. However, given a free hand and competition, there is no reason to believe
that the medium which delivers in any other country will not perform well in India.
36
 Marketing Strategies
It is therefore necessary for us to explain the concept and basic principles of marketing and for Radio
marketing strategies so as to provide you with a better understanding of the marketing
strategies for FM channels.

13.3 MARKETING
Marketing is an activity which should not be looked upon in a vacuum or in isolation. It is, in
essence, taking a view of the whole business organisation and its ultimate~[Link]
for marketing must penetrate all areas of the enterprises. Marketing emphasises the belief,
handed down for a long time by good marketing people, that the 'customer is king' and
hisher satisfaction must be the ultimate aim of a business activity, if the business unit desires
continued success 3over a long period of time. It is because of this that all business thinking
in management must start with identification of a 'need' of a group of likely customers or
persons. This leads to identification of the type of 'product' or service to be offered. The
product or service is aimed at satisfying the needs of a group of consumers, known as
customer segment or mix directed to secure consumer-satisfaction as well as profitability
for the organisation.

13.3.1 The ~ e a n i of
n ~Marketing
Let us start by first understanding the meaning of the word 'marketing'. Thereafter, we will
offer you some definitions and develop the topic further.

Let us raise the following question:

What do you understand by the word 'marketing'? You may write your answer in the space

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I The objective of this question is to make you start thinking on your own. While answering the
above question have you thought that

Marketing is selling

Marketing is advertising

Marketing is promotion

If yes, then you are certainly on the right track.

Even in our own country when managers are asked this question, the majority of them give
a similar reply. It is important to understand that marketing is much more than selling or
advertising, although these do form part of the marketing functions.

The American Marketing Association defines marketing as follows:

"Marketing is the performance of business activities that directs the flow of goods and
services from producer to consumer or user."

37
Radio Management This definition is undoubtedly an improvement on describing marketing as selling as it shows
And Marketing
that marketing does encompass other activities besides selling. Schematically, this definition ,
can be reproduced as shown below:

PRODUCER CONSUMER
Product

Marketing
Activities

We can see that marketing, as per this definition, starts with a 'product'. This is a very
common idea among many people, for example, in advertising agencies, as they normally are
required to advertise to sell a product which already exists. Similarly, salesmen are also given
'products' and asked to sell them. Therefore, to them marketing often starts with a product.

Marketing has also been defined as "the analysis, planning, implementation, and control of
programmes designed to bring about the desired exchange with the target audience for the
purpose of personal or mutual gain. It relies heavily on the adaptation and coordination of
product, price, promotion, and place for achieving effective response". In other words,
marketing is the set of human activities directed at facilitating and consummating exchanges.

13.3.2 The Marketing Mix

Marketing is performed within a certain environment which itself is always changing. The
marketing activities have, therefore, to change in consonance with environment in order to be
continuously effective. In order to appreciate this process, it is easier to divide the marketing
activities into four basic elements which are together referred to as the marketing mix. These
four basic elements are:

i) Product
ii) Price
iii) Promotion and
iv) Place (or physical distribution).

As all these four start with the letter 'P' they are, at times, referred to as the four Ps of the
marketing mix or the 4Ps in marketing.

Product stands for the goods orservices offered by an organisation. Once the needs are
identified, it is necessary to plan the product and after that keep on analysing whether the
product still satisfies the needs which were originally planned for, and if not, to determine
the necessary changes.

Price refers to the money value that the customer has to pay. The product has to be adequately
priced. This involves considerations of the profit margin, the cost, the possibility of sales at
~
different prices and the concept of the right price.

Promotion is the aspect of selling and advertising, or communicating the benefits of the
product or service, to the target customers or the market gegment involved in order to
persuade them to purchase such products or services.

It includes selling through advertising as well as the sales force. Besides, a certain amount
of promotion is done through special seasonal discounts, competitions, special price
reductions, etc. collectively called sales promotion.

Finally, Place or Physical distribution refers [Link] aspect of the channels of distribution
( ~

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 Marketing Strategies
13.3.3 Marketing of Services for Radio

All business thinking in management must start with identification of a 'need' of a group
of likely customers or persons. This leads to identification of the type of 'product' or service
to be offered. The product or service is aimed at satisfying the needs of a group of consumers,
known as customer segment or segments. This is followed by a host of decisions and
activities known as the marketing mix directed to secure consumer-satisfactionas well
as profitability for the organisation.

The tern 'service' is rather general in concept and it includes a wide variety of services.
1 There are the business and professional services such as adyertising, marketing research,
1 banking, insurance, computer-programming, legal and medical advice. Then there are services
' which are provided by professionals but consumed for reasons not necessarily of business,
1 rather for leisure, recreation, entertainment and hlfillment of other psychological and
I
emotional needs such as education, fine arts etc.

that you can increase your number of customers and also command their loyalty. Thus, as
1 a marketing manager involved in the marketing of services, your first concern should be the
identification of the customers' needs.

Having now understood the importance of the marketing mix, it should be remembered that
marketing consists in directing a proper marketing mix towards a target group of customers
)I or market segment. The "Four Ps" are decided and directed at the consumers on the basis of
proper diagnosis of the market arrived at through the process of marketing research.

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3) What do you understand by marketing of services?
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'
' Now let us see in brief how the principles and practices of marketing management are
followed by FM radio operators.
I Product: FM, to some, is technology and to others a genre by itself Whatever the academic.

39
Radio Management Promotion: Advertisers will buy time on the radio channel which is more popular among the
And Marketing audience. The promotional strategies of various FM channels are two fold, viz. their strategy
to woo the listeners through programmp content, the interactivity to keep the audience hooked
on the one hand, and to market the station to the industry for selling air time/sponsorship etc,
on the other. Currently, radio share is just two per cent of the over Rs 10,000 crore ad pie.
Television on the other hand, accounts for nearly 36 per cent ad spend.
The FM stations were allotted various frequencies 92.5,93.5, 94.6,98.3, 102.6 which could
be a hindrance in giving a branding niche to various competing channels. The private
channels however, did not lose any time in christening respective stations. Not to be isolated,
AIR also re-christened its FM I and FM I1 as AIR FM Rainbow and AIR FM Gold. Radio
Mirchi in fact played on the number game 98.3 and FM WIN on its name in their promotional
campaigns. A number of marketing exercises are undertaken to woo the target audience base.
Cross media ownership with most of the FM stations has come in handy to advertise the
product more vigorously. Radio Mirchi, owned by the Bennett & Coleman group can claim
to have one of the most visible promotion campaigns and fierce marketing strategies.
Price: FM is free to air for the listeners, but for the advertisements it carries a price referred
to as advertising rates.
Place: Place in marketing terminology connotes distribution. As of now, FM is distributed
only in metros and some bustling towns where the number of listeners are in millions. The
channel operators have no maneuverability so far the place of a radio statlon is concerned
as this is determined by the Government.
In the context of radio, two more Ps, namely, people and perceptions are also important.
We shall examine each of these in greater detail in the following sections.

13.5 PRODUCT: PROGRAMME MIX

. With so many channels, FM radio is like a commodity market where brand differentiation
will decide the victor. Tune in to any FM station, and one gets a potpuree of Indian pop,
weather news, traffic information, interactive chat et al. The general perception is that none of
the FM stations have been able to create a distinct niche for itself. It is the self-advertisements
and the signature tune that probably is the only differential. The FM spokespersons feel that
with the fixed licence fee structure, even if a station wished to do niche programme, it would
be constrained against it, because advertisers may not be attracted. Hence, it is run of the mill
Hindi songs most of the time on all the FM stations. The clutter, feel the experts can change
only when operators feel comfortable with the money situation and apply-their minds on
creativity. Till such time, they would chum out the 'me-too' programmes of pop music to
cater to the wider audience base. There is a general criticism that all FMs play the same songs.
Many a time, even when one changes the channels, probability is that the same song would
i
be played there too! Hence it is hardly surprising that listeners are unable to differentiate
between one channel from another. According to a recent survey, 74 percent of listeners
were unable to correctly associate FM programmes with the channels they saw.
Radio City introduced daily morning forecasts Radio City Bhavishyavani. Its other programmes
include 'Kiski Dilli, Kaisi Dilli' 'Kid Hour', 'Gana Full Plate, 'Nau do Gyaraha, Tandoori
Nites and Power Update. Radio Mirchi, has music, contests and chirpy jockeys. According
to its CEO, it does not play retro, gazals or English songs. It is a 24x7 contemporary Hindi
channel. In a survey conducted by another radio station, an 'active dislike for English' was
found. However, the language used is generally Hinglish or Hindish.

Some channels also broadcast film gossip in good measure. Media analysts feel that it is
nothing but a rehash of what has already been published in tabloids and newspapers in the
morning.

FM channels are playing safe with similar programming formats that appeal to the largest
common audience base. In the absence of a robust and reliable measurement, it is difficult
to know the target audience and their preferences. While listnership is growing, listeners lack
brand loyalty.

Lending international dimension to FM operation, one channel has hired the services of
John Catlett, who has built and operated popular radio stations in major cities of the US
and Europe. According to,the industry buzz, Catlett has a mind to introduce new style of
programming in order to 'revitalise the place of radio among today's active young Indian'.
40 -
 Marketing Strategies
"Everyone in the radio business likes to think he knows just what the public wants to hear, for Radio
but almost invariably that opinion is heavily influenced by a person's own taste and the
similar tastes of his or her friends," says Catlett.

When the govemment of India allowed private participation in FM radio, one of the
conditions was that they would be debarred from news and current affairs programmes.
This is considered unfair by some as many private media houses have 24 hour television
news channels. However, with many FM stations, news seems to be an integral part of
their programme content. The escape route is that the govemment has not given any specific
definition of 'news' to private players, hence they are going by their own interpretation of the
word. Some of them do not call it news, they refer it as 'Biz updates' or 'Business update'.
The news even includes a run on the stock prices.

AIR did not lag behind in its programme strztzgy. It re-christened AIR FM I and 2 to AIR FM
Rainbow and AIR FM Gold for making bc:h channels distinct from each other. If the former
caters to a variety of tastes-from popular Hindi film music to Western Classical, rock, pop and
jazz including chat shows, help-lines and city beats, aiming at audience 'young at heart", the
later, AIR FM Gold is 'vintage in positioning', playing all the golden melodies plus news and
current affairs. Accordi~l~ :o Marketing Director of AIR FM, FM Rainbow caters to the youth
and 'young at ~ P Z L and
' Fhl Cold to a mature audience, including retired people.

Analysts feel that AIR FM, besides being around for some time, also has interesting current
affairs programmes that have helped it retain its listenership. When private channels are
allowed to include news and current affairs programmes, it would not only bring in variety,
but the differential among various players would also be conspicuous. The other area that
would bring in loyal listener base would be various stations' ability of scheduling the
programmes at various parts of the day depending on the demographic and user-graphic
profile of listeners.

13.6 PROMOTION
The FM operators are using various communication strategies that include direct mailers,
meetings, and using media both through advertising space, and reportage to attract the
attention of the industry. Large discounts, it is believed are offered by private channels,
depending on the negotiating capability of the media buying agencies. AIR feels handicapped
as there is no product promotion fimd with them to attract the space buyers. But despite that,
they feel the strength of the programme content and their rapport with the,clients and agencies
help them in getting better revenue.

The private FM stations have launched a number of promotional strategies to be in focus and
gain visibility. Every radio station mes to establish its positioning effectively. One FM station
for instance has launched a campaign to communicate 'fun' as a basic proposition. Its 'Fun
ka dose har roz ' ads have been splashed across the media. Another channel positioned
themselves as the 'mostentertaining' radio station: of being the ultimate boredom buster.

One FM station after launch took its van around the city of Delhi asking people to sign over
it and guess how many signatures there will be by the end of the campaign. The winner
received a motor car. An FM station gave away fuel worth Rs 10,000 everyday. Those who
drove in to a Bharat Petroleum Station and allowed pasting of the FM station sticker on the
car were included in the game. If the car number was announced on air, a call to the station
within 30 minutes made the person eligible to claim a prize.

The 98.3 Kismat Khol De contest had lakhs of people participating in it when it was launched
in Delhi and Mumbai in May and June 2003 respectively. Listeners had to find the number
'983' in various personal things like the bank account; credit car, car, cheque book etc. The
contest was given huge publicity both in the Radio and various newspapers of the Times group.
Some lucky winners got the FM radio in lieu of the sticker on their vehicle. According to the
channel managers, the aim was to re-establish frequency, by connecting numbers that were
crucial to everyday life of listeners. In their view, everybody was looking for excitement, and
by promotion of that kind, they were also passing on a message to the advertising agencies.
(

41
Itadio Management WIN 94.6 also used innovative strategies to woo the young listener. It gave away scholarships
And Marketing
to students who scored 94.6 per cent in their board examinations, paying the entire first
semester fees. The station also capitaIised on its name 'WIN' by saying that with such a
station, you could only win. It was ironical that it suspended transmission in May 2003 for
what the industry watchers say was owing to colossal financial loss. However, it resumed
transmission in July 2003.

Go 92.5 has launched a lunchtime show, 'Dabba Service' that is targeted at lunchtime
audience in offices. Office goers can call in greetings to their colleagues that will be aired
during the show. According to the spokesperson of this station, what they are looking at
people who listen to radio while having lunch from 1 .OO p.m. to 2.00 p.m. Free holidays,
shopping vouchers are commonplace in various contests. In order to make their programmes
more glamorous, all the FM stations have been inviting popular film and television stars to
speak over them.

As of now, as brought out elsewhere in this unit, none of the FM channels except the AIR FM 1
stations has been making substantial revenue. No private channel has even reached the stage
of break-even. Hence, it is the constant endeavor of the FM stations to woo advertisers. The
response has been quite encouraging from a section of advertisers. Others are waiting and
watching.

It is felt that FM, supposed to be a local medium catering more to the retail outlets and local
advertisers, has drifted and there is an important reason behind this. To recover costs, FM
stations have been vigorously marketing their stations to big-time advertisers who have the
money. Advertising of cars, insurance, travel packages that appeal to the upper crust target
audience SEC-ABC can be felt all over. SEC is the Socio Economic Classification of audience
based on various factors that include education, and occupation and indicated as A/B/C.

Analysts feel that whatever one says of the strategy of wooing the big spender, small
advertisers find FM ad rates highly prohibitive. Unless the stations reduce their rates,
there may not be many local advertisers who would use FM for advertising. This would
go against the medium per se. But given the enormous pressures, under which the private
stations are working, it is hardly surprising to see SEC-ABC being wooed.

Roadblocks

The sailing has not been smooth for the private FM stations who claim heavy losses. Five
private operators submitted their financial statements to the Ministry of I & B that reflected a
combined turnover of Rs 50 crores and a combined loss of Rs 120 crores among the operators.
These companies paid the government licence fee to the tune of Rs 74 crores during the
,
1

period. It is a matter of fact that against eleven bidders for eleven frequencies auctioned for
Delhi, only five responded and today it is reduced to three. In Mumbai, it is reduced to four,
besides AIR FM. Some analysts feel that only the fittest will survive in this environment of
high cost of operation.

Another objection has been from the music companies who feel that 24 hour FM station
playing popular songs have brought a dent in their business of selling cassettes and CDs.
The music companies have their sales data since the coming of FM stations to support their
argument. They have been arguing in favour of song edits, instead of playing complete songs 1
by FM stations. As FM radio stations play the songs time and again, listeners do not feel the
need to buy the cassettes1CDs. However, FM station spokespersons have been arguing that
radio always enhanced sale of cassettes and not vice versa.

The other pragmatic view is that as FM is a new and growing medium, which has the
potential to 'cannibalise' other entertainment options, but only until its newness wears off.
The VCR, when introduced, was said to sound the death knell of cinema, but multiplexes
started drawing people to cinema once again. Hence, the solution may not be in song edits
but waiting and watching the trend with patience.

The dispute about payment of royalty, however, seems to have been resolved between the
private FM stations and Phonographic Performance Ltd. (PPL), the representative body of
various music companies. The Copyrights Board has decided on a rate of Rs 1200 per needle
hour applicable on prime time broadcasting (8.00 a.m-1O.a.m. and 6.00 p.m.-8.00.p.m.). The
rate for lean hours, i.e., 10.00 p.m.-6.00. a.m. is 25 per cent of the standard rate. For the rest of
the day it is Rs 750.00 per hour. All put together it works out to Rs 16,200 per day. The Board
has applied a flat rate system, despite varying population figures in different cities.
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 Marketing Strategies
13.7 PRICE for Radio

From the time AIR went commercial in 1963, it never has had any significant marketing
strategy to tap the market. The availability of ad time was enough for the ad agencies to
include radio in their media planning. The newness of the medium, radio's reach, easier
production techniques and low tariff made radio advertising an attractive proposition.
From the mid-sixties to the end of nineteen seventies, the listeners heard some of the most
memorable ad jingles. Usha Uthup's 'Mummy, Mummy Modem Bread' rent the air right in
the morning in many languages all over the country. Lux, Vicks, Amul, Coca-Cola, Afghan
Snow, Binaca, Colgate, La1 Dant Manjan, Mugli Ghutti 555 were some of the other brands
that used the medium extensively.
With competition now brewing from the priyate FM radio, and expectation from the newly
i formed corporation, Prasar Bharti now seems to be serious about brand building of AIR and
Doordarshan. Besides the Central Sales Unit established in Mumbai some years ago that
I facilitates booking at one point from all over the country, a Marketing Unit has been set up
in Mumbai, Delhi and other places. Centres from all over the country are encouraged to sell
unsold slots. There pre snzual awards for the best commercial stations.

' Some of the b,irrent nizrketing strategies include tapping the untapped market, going to the
industry directly, cffering 15 percent discount to government, public sector and private sector
organisations, if they come directly and not through advertising agencies. Volume discount is
, offered to ad agencies from April 2003. The following table reflects the annual turnover

Quantum of net business given Rate of agency incentive

(In Rs)

1. Up to 10 l a b s Nil

1% of the amount of which the total net

2. Above 10 but less than 20 lakhs
business exceeds 10 lakhs.

10000+ 2% of the amount by which

3. Above 20 lakhs but less than 301akhs
the total business exceeds 20 lakhs.

300000+ 3% of the amount by which

90000+ 4% of the amount by which

5. Above 50 labs but less than Rs 70 lakhs
the total net business exceeds 70 lakhs.

170000+5% of the amount by which

6' Above 70 lakhs but less than One
the total net business exceeds 70 lakhs.

7. Above 1 crore 320000+6% bf the amount by which

the total net business exceeds 1 crore.

Incentive is paid to only those agencies that do not have any outstanding dues with AIR.

The Prasar Bharti has appointed well known advertising professional Alyque Padarnsee,
as a consultant to advise them on building Doordarshan and AIR as brands. Some of the
top-notch advertising agencies have also been invited to pitch for the campaign.

The Rates

The rates among competing brands are competitive. A study of the Delhi FM tariffs makes an
interesting study. All the four stations have divided their programmes in Super-prime Time,
Prime Time and Non-Prime Time.

43
 Time Super-prime Prime Time Non-Prime Rate (In Rs)
band Time (I) (11) Time (I 11) per 10 seconds

AIR-FM [Link].m. 7.00-8.00a.m. [Link].m-5.00p.m. 900(I)

Rainbow 6.00-7.00 a.m. 10.00-11.00am. 9.00p.m.-12.00 a.m./ 6001400 (11)
5.00-7.00p.m. 12.00-6.00a.m. 300/150
7.00-9.00 p.m./
prime time 2
6.00-7.00 a.m.
Radio 8.00-1 0.00 a.m. 7.00-8.00 a.m. [Link] a.m-5.00 p.m. 3000/2500 (1)
Mirchi 6.00-8.00 p.m. 10.00-11.00am. 10.00 p.m.-6.00 a.m. 2000 (11)
5.00-6.00 p.m. 1200 (111)
8.00-10.00 p.m./
RedFM [Link].m. 7.00-8.00a.m. 11.00a.m-5.00p.m. 2400(I)
6.00-8.00 p.m. 10.00-1 1.00am. 9.00 p.m.-12.00 a.m. 1800 (11)
5.00-6.00 p.m. 1200 (111)
8.00-10.00 p.m./
Radio 7.00-1 1.00 a.m.* [Link] [Link].00 p.m.** 4000 (I)
City 5.00-9.00 p .m. 9.00 p.m.- 12.00 a.m. 3000 (I1 &III)

*Called Radio Active; * * called Radio Mix

8% Service tax and 5% Broadcasting tax over and above the rates.

The last decade witnessed not only fierce inter-media but intra-media competitions resulting
in unhealthy practices in allowing discounts. The emergence of media buying houses and

Radio Mirchi claims 1000 advertisers, including multi national like Coca-Cola and Hindustan
Levers Ltd. (HLL). The station claims 45 lakh listeners every week, the average time being
45 minutes per listener, according to a Radar Study. According to media reports, television
channels have emerged as the fourth largest spender on radio, after, FMCGs, Finance and
automobile companies. Using media from their own stable has been tht: ??!!-rentstrategy
of major players; Radio City advertising for Star Movies, Times of lndia and other sister
publication advertise in Radio Mirchi etc. As the viewership of television has increasingly
become fragmented, channels like Sony, HBO and Sony have also started advertising heavily
on FM radio.

Check Your Progress: 2

, Note: 1) Use the space below for your answers. <

I 2) Compare your answers with those given at the end of this unit. '

1) What type of programme mix is generally broadcast by private FM radio stations?

2) List some promotional strategies being undertaken by private FM radio channels.

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'

3) What steps in marketing have been taken by Prasar Bharati? .

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 -
Marketing Strategies
13.8 THE AUDIENCE: LISTENERS AND PERCEPTIONS for Radio

You have read in the previous section that the entire marketing revolves around four Ps, viz.,
the product, price, promotion and place. In the context of rad~o,two more Ps, namely, people
and perceptions are also important. Most of the FM content is geared to the metropolitan
youth, and feature a "weird mix of talk shows, sponsored shows, and direct call-ins, the same
monotonous stuff'. From the kind of interactive chat that one hears, it is quite clear that the
stations are targeting young listeners.

In fact, FM is a medium of the young. This gets reinforced if one were to content analyse
the programme and the interactive chat on various FM channels on an average day. Various
exploratory research studies undertaken by the research industry and at times commissioned
by some FM channels have been giving contradictory data about the target audience. This
is compounded by the fact that there is no audience-measuring tool as of now to provide
authentic data. According to a recent survey in Murnbai, more than 90 per cent radio FM
listeners belonged to the home segment. If one were to agree with the findings, it is primarily
the housewife who is listening to the FM, which may or may not be very likely. Further
research needs to be undertaken to reinforce the findings.

111 a 'car track' survey done by the IMRB in {he four metros, field surveyors placed
themselves at ten of the busiest traffic junctions in each metro during morning and evening
rush hours and randomly chose private cars. Radio dial was checked to determine the radio
station tuned in. The interesting finding was that 60-70 per cent of car population was tuning
into the radio barely two to three weeks after it was launched in Delhi, Kolkatta and Chennai.
Most of the car owners would be a mixed group of young and middle-aged office goers and
not necessarily the college youth.

According to another IMRB research, the reach of FM is the highest among students and
working men. According to Indian Readership Survey 2002 (IRS 2002), radio as a medium
has grown by 69 per cent and is the fastest growing besides the Internet. In Mumbai that has
five private players besides two AIR FM stations, the reach is estimated at 62 per cent. The
average daily listenership in households with FM access is 54 per cent as compared to 85 per
cent of television viewership. Time spent in listening to radio is 105 minutes as compared to
average TV viewership of 135 minutes.

I There has also been increase in the ownership of music systems and portable radios according
to the same survey. According to a media report in Financial Times, Philips hopes to sell
about four lakh units of pocket radios in a year. In the first seven months of the FM boom, the
company doubled its sales of pocket radios to about a lakh and a half pieces. Cashing in on
the popularity of FM, the company has come out with five new models of FM pocket radios.

I Although radio is perceived to be the medium of the masses by language and content, analysts
feel especially that in case of FM the tone, tenor and personality of the RJ's, the stations are
' fighting over a relatively narrow segment of Socio Economic Classification - SEC-ABC,
though given the prohsion of cheap sets, many listeners would belong to SEC-D and E also.

Experts feel that the reason for inadequate radio audience measurement is the small share
of ad pie and the vast geographic spread. According to Media Research User's Council
(MRUC), which is developing a measurement system for the medium, "The sharp listnership
augurs well for the medium and has given players a reason to be in business despite high
licence fee". It plans to shift from the current 12,000 people tele-survey to a dairy based panel
for data collection. In the absence of any credible research data about radio listnership, other
than NRS/IRS half yearly data, and AIR'S inhouse audience research publications, the media
planners are anxiously watching for more and more research data on a monthly, if not weekly

13.9 LET US SUM UP

AIR FM, a new experiment when launched first with private enterprise in the early nineteen
nineties and later by AIR received an overwhelming response in the beginning from the
industry. It was probably for the first time that the medium offered different kind of
programmes especially aimed at the young listeners. Despite the fact that there was a dip in
the revenue after AIR took the FM mantle on itself, but it was still an earner of good revenue
for AIR, when the general listnership of short-wave and medium wave was going duwn.
45
 Radio Management Any new phenomenon takes time to settle down and FM is no exception. The high
And Marketing expectation of response from the industry to FM both from the Govern~ilent'sand operators'
perspective has been exaggerated. The s~cculativebidders further spoiled the show. The brief
t romance of AIR and private enterprise with FM raised the expectations to such an extent that
government first did not renew the contract of private entrepreneurs like the Times and Mid-
day, but ventured to Nn the FM itself. Despite the shortfall in ad revenue, it still contributed
more than Rs 80 Crores in the government coffers in the year 2000-200 1. Over expectation
of revenue from FM, an overwhelming initial response from the industry when privatisation
was announced made the government skew up the licence fee. Many bidders were not serious
players an8 vanished from the scene. In the process, however, two important considerations
were missed, one that the FM would have limited reach, two, radio had gone down in the
reckoning of media choice over a period of time, especially with large advertisers due to
dipping listenership. It would take some time for FM to get settled when media planners
would seriously consider it in their media choice.

While radio advertising is promoted for being a cost effective medium by the operators, many
media experts feel that it really is not the case when the tariffs are compared with some of the
music channels on television.

The 'unviable' licence fee has already seen many players withdrawing and others suspending
transmission after a year of running a station. As most of the operators have cross media
ownership, especially from among the rich and mighty, intense lobbying can be felt in
pressurising the government to rationalise licence fee at the earliest. Competitors have
mend fences to join in the common cause.

As for the content, although every operator claims to be high bn consumer research, but is
this what an average listener wants? It needs to be probed who the quintessential FM listener
is? Is s h e a very young person, an ofice going executive driving his car, or a housewife?
An interesting finding deduced from the programming content is that some programmes are
targeted at office goers during lunch time, which makes us believe that mass media has made
inroads into the corporate world also, and employees have access to the media during office
hours. Various exploratory researches have been defining the target audience based on their
findings. In the absence of a measuring tool, most of the talk about audience and programme
content revolves around conjectures and gut feel.

With a few players today and hopefully many more tomorrow, the FM channels will have 1

to put their act together in the following areas: improving content, making more meaningful
programmes, catering to the needs of a disparate audience, establishing brand loyalty ,among
its target audience by going beyond interaction on radio to'establishing radio manchlforums,
improving quality of transmission, interface with industry'etc.

FM stations would have to undertake a number of strategies both from the supply and demand
side to make the medium viable. On the supply side, they need to reduce their capital cost,
lease out idle time to genuine programmerslmedia houses, reclpction in import duties on
transmitters, studio equipment, lowering of licence fee to match world standards and a
formula to share revenue. On the demand side, they need to provide listeners with a wide I
variety of programmes to suit various kinds of tastes and aspirations and explore beyond I

offering pop music alone. ' 1

13.10 CHECK YOUR PROGRESS: POSSIBLE ANSWERS
Check Your Progress: 1

1) Marketing is the performance of business activities that directs the flow of goods
and services from producer to consumer or user. Product is an important element of
'
marketing which is promoted using various strategies. Marketing is much more than
selling or advertising, although these do form part of the marketing functions. It i's a
set of human activities devised at facilitating and consummating exchanges betweep
the producer and buyer.

2) The four Ps of marketing mix are; product, promotion,'price and place. In the context
of radio, two more Ps, namely, people and perceptions are also important.
- 1
CI. 1 ,
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