Radio as a Marketing Tool
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Transcript of Radio as a Marketing Tool
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April 15,
2013RADIO A MARKETING TOOL: REFURBISHED MEDIA
BY: URJA SHRIVASTAVA 1
RADIO AS A MARKETING TOOL: REFURBISHED MEDIA
1.Radio: Boon or BaneFACTS
According to the history of Indian radio, radio broadcast started in India with the setting up of a
private radio service in Chennai, in the year 1924. In that same year, British government gave
license to the Indian broadcasting company, to launch radio stations in Mumbai and Kolkata .
later as a company became bankcrupt , the Govr took possession of the transmitters and began
its operations as the Indian state broadcasting corporation. In the year 1936 it was renamed ALL
INDIA RADIO (AIR) and the department of communications managed it entirely. After
independence, AIR was converted into a separate department. AIR has 5 regional headquarter in
newdelhi(north-zone),Kolkata zone(east-zone), guwahati(north-east zone),Mumbai(west
zone),Chennai(south-zone).
In the year 1957, AIR was renamed Aakashvani, which is controlled by ministry of information
and broadcast. During the period of independence only a mere 6 radio station existed through out
the country. But the during late 1990s, the network of AIR extended to almost 146 AM stations.
Moreover the integrated north-east surveys focused on reaching to the population of north-east
india. AIR offers programs in hindi, English and numerous religional and local languages.
Commercial radio services started in india in 1967. The initiative was taken by vividh bharati
and commercial service, from the head quarters in Mumbai. Vividh bharati accumulated
revenues from widespread sponsorship and advertisements
ANALYSIS
Radio a hallucinating invention to help the people To stay connected was a wonderful Invention,
which revolutionized the way marketing was done previously, Radio was flooded with
advertisements. This revolution could have continued
2. Television- reversed the tide against radio
FACTS
Terrestrial television in India started with the experimental telecast starting in Delhi on 15
September 1959 with a small transmitter and a makeshift studio. The regular daily transmission
started in 1965 as a part of All India Radio. The television service was extended to Bombay (now
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Mumbai) and Amritsar in 1972. Up until 1975, only seven Indian cities had a television service.
Television services were separated from radio in 1976. National telecasts were introduced in
1982. In the same year, colour TV was introduced in the Indian market. Indian small screen
programming started off in the early 1980s. At that time there was only one national channel
Doordarshan, which was government owned. The Ramayana and Mahabharata (both Indianspiritual & mythological stories) were the first major television series produced. This serial
notched up the world record in viewership numbers for a single program. By the late 1980s more
and more people started to own television sets. Though there was a single channel, television
programming had reached saturation. Hence the government opened up another channel which
had part national programming and part regional. This channel was known as DD 2 later DD
Metro. Both channels were broadcast terrestrially.
PAS-1 and PAS-4 are satellites whose transponders help in the telecasting of DD programmes in
half the regions of the world. An international channel called DD International was started in
1995 and it telecasts programmes for 19 hours a day to foreign countries-via PAS-4 to Europe,Asia and Africa, and via PAS-1 to North America.
It is also noted that Prabir Roy, had the distinction of introducing colour T.V. coverage in India
in February - March,(1982) during the 1st Nehru Cup which was held at Eden Gardens, Kolkata
with 5 on-line camera operation, long before Doordarshan started the same during the Delhi
Asian Games in November 1982.
TV Programs: The eighties was the era of Doordarshan with shows like Hum Log (1984),
Buniyaad (198687) and comedy shows like Yeh Jo Hai Zindagi (1984), Mythological dramas
like Ramayan (198788) and Mahabharat (198990) glued millions to Doordarshan and later on
Bharat Ek Khoj, The Sword of Tipu Sultan and Chandrakanta. Hindi film songs based programs
like Chitrahaar, Rangoli, Superhit Muqabla crime thrillers like Karamchand, Byomkesh Bakshi.
Shows targeted at children include Dada Dadi ki Kahaniyan, Vikram Betal, Malgudi Days,
Tenali Rama.
ANALYSIS
TV took over the tide as it tend to be more strong way of communication via pictures, As the rate
of retention of any video was much larger than the voice in internet so it was more prospective to
marketers in terms of audience and value proposition method
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3. Television- Channels flooded
FACTS
The central government launched a series of economic and social reforms in 1991 under Prime
Minister Narasimha Rao. Under the new policies the government allowed private and foreign
broadcasters to engage in limited operations in India. This process has been pursued consistently
by all subsequent federal administrations. Foreign channels like CNN, STAR TV and private
domestic channels such as Zee TV, ETV and Sun TV started satellite broadcasts. Starting with
41 sets in 1992 and one channel, by 1995, TV in India covered more than 70 million homes
giving a viewing population of more than 400 million individuals through more than 100
channels.
There are at least five basic types of television in India: broadcast or "over-the-air" television,
unencrypted satellite or "free-to-air", Direct-to-Home (DTH), cable television, and IPTV.
Over-the-air and free-to-air TV is free with no monthly payments while Cable, DTH, and IPTV
require a monthly payment that varies depending on how many channels a subscriber chooses to
pay for. Channels are usually sold in groups or a la carte. All television service providers are
required by law to provide a la carte selection of channels.
As per the TAM Annual Universe Update - 2010, India now has over 134 million households
(out of 223 million) with television sets, of which over 103 million have access to Cable TV or
Satellite TV, including 20 million households which are DTH subscribers. In Urban India, 85%
of all households have a TV and over 70% of all households have access to Satellite, Cable or
DTH services. TV owning households have been growing at between 8-10%, while growth in
Satellite/Cable homes exceeded 15% and DTH subscribers grew 28% over 2009. (However,
some analysts place the number of households with television access at closer to 180 million
since roughly a third of all rural families may watch television at a neighboring relatives home,
and argue that Cable TV households are probably closer to 120 million owing to a certain
percentage of informal/unregistered Cable Networks that aren't counted by mainstream surveys).It is also estimated that India now has over 500 TV channels covering all the main languages
spoken in the nation
Throughout the 90's, along with a multitude of Hindi-language channels, several regional and
English language channels flourished all over India. By 2001, international channels HBO and
History Channel started providing service. In 19992003, other international channels such as
Nickelodeon, Cartoon Network, VH1, Disney and Toon Disney entered the market. Starting in
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2003, there has been an explosion of news channels in various languages; the most notable
among them are NDTV, CNN IBN and Aaj Tak. The most recent channels/networks in the
Indian broadcasting industry include UTV Movies, UTV Bindass, Zoom, Colours, 9X and 9XM.
There are
ANALYSIS
These Facts clearly depict that late 20th
century was ruled by Television and was able to Capture
a larger market. Much of the Promotion activity was done via the TV and the various CSR
activities were conducted and displayed via the TV to build the brand. And hence Brand
Management activity was done using this medium
4. Changing lifestyle & Local communication link missingANALYSIS
As the LPG(Liberalization, privatization and globalization) policy was adopted, Economy
growed, led to much of international players entering into Indian market. Large segment of
Indian population got job and employment % increased. This led to changing lifestyle and
suddenly the computers evaded the space of television. As the routine of Service Sector(became
more stringent) There was no time left for either
Moreover generally most of the channels were nationalized; a local link for communication was
missing and people started feeling the gap between the communication and the value proposition
being put forth in front of them. Marketers started feeling their STP(segmenting, targeting andpositioning) strategies was going wrong because of existence of sub segments within segments.
5.Radio REFURBISHED as a marketing toolFACTS
In 1990 V.P. Singh`s National Front government provided financial aid to the Prasar Bharati
(Indian Broadcasting) Act that was considered by Parliament. This act provided greater
autonomy to Doordarshan and All India Radio. The changes that resulted in the scenario of
Indian radio were limited. The bill allowed the establishment of an autonomous body to control
Doordarshan and All India Radio. This unit operated under a board of governors, who were
appointed for policy making and a broadcasting council to respond to the complaints. This was
the start of interaction through radio.
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With time the number of radio stations has increased from about 100 in 1990 to 209 in 1997.
Indian radio now has tremendous reach and presents the best option for low-cost programming.
Listenership of Indian Radio has reached a plateau. At times the listenership has risen in certain
urban areas due to the recent time allotment to private companies on five FM stations. Film and
other popular music constitute the main curriculum of such stations, contributing to an increasein commercial time radio and thus earn advertising revenues from Rs. 527 million in 1991-2 to
Rs. 809 million in 1995-96.
The noticeable development in Indian radio has been the proper efforts that were taken to use
radio for social change, like the state-supported radio rural forums for agricultural
communication in the 1960s and promotion of adult literacy in the 1980s. The advent of regional
radio in India popularised this medium even more. More recently NGOs have come together and
initiated several broadcast programmes on women and legal rights, emergency contraception,
and tele-serials that deal with social issues. Although Indian Radio saw almost no improvement
in its initial years, in the present decade the functioning of regional radio channels have lead to a
massive network all across the country.
Local broadcasting, reflecting local issues of concern to the community is another development
of Indian radio. Some communication experts believe that an increased and accelerated
commercialisation of radio will eventually cut down the costs of FM radio sets, thus making
local radio even more available to the extreme rural areas of the country. Presently, radio
broadcasting is done in 24 languages and 146 dialects all across India and there are 104 millionradio households in the country, using approximately 111 million radio sets.
The inclusion of FM facility in mobile phones and portable pocket radios have popularised this
medium in every nook and corner of urban areas. Although the transmitters have not reached the
extreme corners, developments assure quick installation; a recent survey shows that Indian radio
reaches out to almost 97.3% of the country`s population and 91% of the country`s geographical
area. A March 1996 survey, says that there had been around 186 radio-broadcasting centers, 148
medium wave transmitters, 51 short wave transmitters and 94 VHF/FM transmitters in India.
Indian Radio now enjoys equal importance as television and print media. The developments of
radio in India was steady during the 1960s and 70s, but accelerated during the 1980s and 90s.
Radio has now become an intimate form of communication and the FM channels like Red FM,
Radio Mirchi, Power Fm and others have contributed greatly in developing this strong network.
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ANALYSIS
As TV was posing not only STP problem but also Environmental Degradation problem because
of CO2 emission from CRT and LCD display, So Radio which now was clubbed with almost
each mobile was a medium for major target audience as it does not restricted audience to restrict
themselves to sit on a sofa and den only watch, Radio was a dynamic, mobile and potential
source for audience.
This led to various local FM channels which were sold to various private players who were
generally active in news delivery, Local Value proposition companies, GLOCAL players. This
led to various FM channels like some listed below to pop up.
List of FM Radio Stations in India
Amritsar
BIG 92.7 FM
MY FM 94.3
Meow 104.8 FM
Radio mirchi 98.3 FM
Ahmedabad:
Radio Mirchi 98.3 FM
Radio City 91.1
S FM 93.5
Radio one 95 FM
MY Fm 94.3 FMVividh Bharati 96.7 FM
Ajmer:
Radio City 91.1
S FM 93.5
MY FM 94.3
Big 92.7 FM
Bengaluru(Bangalore):
Radio City 91.1Radio Indigo 91.9
Big FM 92.7
S FM 93.5
Radio One 94.3
Radio Mirchi 98.3
Amrutvarshini 100.1
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FM Rainbow 101.3
Vividha Bharati 102.9
Fever 104 FM
Gyan Bharati 107.2
Bilaspur:Big FM 92.7
S FM 93.5
My FM 94.3
Radio Mirchi 98.3
Akashwani FM Bilaspur / Vividh Bharti 103.2
Chandigarh:
Big FM 92.7
My FM 94.3
AIR ChandigarhAIR FM Rainbow
Chennai:
Anna FM 90.4
Loyala FM 90.8
Radio City 91.1
Aahaa FM 91.9
Big FM 92.7
Suryan FM 93.5
Radio One 94.3
Radio Mirchi 98.3
Rainbow FM 101.4
Gold FM 102.3
Gyan Vani 104.2
Muthoot FM 104.8
Hello FM 106.4
MOP FM 107.8
Coimbatore:Radio City 91.1
Gyan Vani 91.9
Suryan FM 93.5
Radio Mirchi 98.3
AIR FM Rainbow/Vividh Bharati 103.0
Hello FM 106.4
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Delhi:
Radio City 91.1 FM
Big 92.7 FM
Red FM 93.5Radio One 94.3 FM
Hit 95 FM
Radio Mirchi 98.3 FM
AIR Rainbow FM 102.6
Fever 104 FM
Meow 104.8
AIR FM Gold 106.4
Gyan Bharti 105.6
Devikolam Idukki:Devikolam Fm 101.4
Gwalior:
suno lemon 91.9 fm
big fm92.7
My fm94.3
chaska 95.0 fm
Guwahati:
Radio oo Lala 91.9
Big FM 92.7
Gup-Shup 94.3
hisar :
mantra 91.9 fm
big 92.7
tarang 104
dhammal 106.4 fm
Hyderabad:101.9fm Fm Rainbow
102.8fm Vividh Bharathi
91.1fm Radio City
92.7fm Big 92.7fm
93.5fm South Asia FM (S FM)
98.3fm Radio Mirchi
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105.6fm Gyan Vani
Indore:
Big FM 92.7
My FM 94.3Radio Mirchi 98.3
S FM
Bhopal:
Big FM 92.7
My FM 94.3
Radio Mirchi 98.3
S FM 93.5
Jaipur:
Radio City 91.1S FM 93.5
MY FM 94.3
FM Tadka 95
Radio Mirchi 98.3
AIR Vividh Bharti 100.3
Kannur:
Club FM 94.3
Best FM 95
Radio Mango 91.9
Suryan FM 93.5
Kannur FM(AIR) 101.5
Kochi:
Club FM 94.3
Kochi FM 102.3(AIR)
Radio Mango 91.9
Suryan FM 93.5
AIR FM Rainbow 107.5
Kodaikanal:
AIR FM Rainbow 100.5,103.7 Covers 22 Districts
Pasumai FM 90.4 (Dindugal)0.2 Kw
Kolkata:
Power 107.8 FM[1]
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Aamar 106.2 FM
Red FM 93.5
Friends 91.9 FM
Big FM 92.7
Radio Mirchi FM 98.3Fever FM 104.0
Meow FM 104.8
Rainbow FM 107.0
Gyan Vani 105.4
FM Gold 100.2
Kozhikode:
Radio Mango 91.9
Suryan FM 93.5
Real FM (AIR)103.6
Lucknow:
Radio City 91.1 FM
S FM 93.5 FM
Radio Mirchi 98.3 FM
Vividh Bharati 101.0 FM
AIR Lucknow
Madurai:
AIR FM Rainbow 103.3
Suryan FM 93.5
Radio Mirchi 98.3
Mangalore:
Radio Mirchi 98.3
Big FM 92.7
Manjeri Malappuram:
Manjeri Fm (AIR)102.7
Mumbai FM Stations:
Radio City 91.1 [2]
Big FM 92.7 [3]
Red FM 93.5 [4]
Radio One 94.3 [5]
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Radio Mirchi 98.3 [6]
Fever 104 FM 104.0 [7]
Meow 104.8 [8]
AIR FM Gold 100.7 [9]
AIR FM Rainbow 107.1 [10]Mumbai One
Gyaan Vani
Radio MUST
Nagercoil
Air 101.1 FM
Nagpur:
Radio City 91.1
S FM 93.5My FM 94.3
Radio Mirchi 98.3
Akashwani 100.6
Nasik:
98.3FM Radio Mirchi since 2007
93.5FM S FM
101.4FM Akashwani
Perundurai
Kongu FM 90.4 (Kongu arts College)0.2 Kw
Muhil FM 90.4 (Thiruchengode sengunthar college) 0.2KW
Puducherry (Pondicherry):
Suryan FM 93.5
Big FM 92.7
Hello FM 106.4
AIR Rainbow FM 102.8
Pune:
Radio Mirchi 98.3 FM
Radio City 91.1 FM
Radio One 94.3 FM
S FM 93.5 FM
Vividh Bharati 101.0 FM
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Pune University Vidyavani 90.8 FM
Radio FTII 90.4 FM
Big FM 92.7 FM
Raipur:My FM 94.3 MHz
Radio Mirchi 98.3 MHz
Rangila FM 104.8 MHz
Akashvaani 101.8 MHz
Gyaan Vaani 105.6 MHz
Rajahmundry:
S FM 93.5 MHz
Surat:Radio City 91.1
Big FM 92.7
Radio Mirchi 98.3
MY FM 94.3
Thrissur:
Club FM 94.3
Best FM 95
Radio Mango 91.9
Suryan FM 93.5
Thiruvananthapuram:
Big FM 92.7
S FM 93.5
Radio Mirchi 98.3 MHz
Club FM 94.3
DC Radio 90.4
Ananthapuri Fm(AIR)101.9
Thirchi
AIR Vividbharathi 102.1
Hello FM 106.4
Tirunelveli
Suryan FM 93.5
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Hello FM 106.4
Tirupathi:
Big FM 92.7
S FM 93.5
Tuticorin
Suryan FM 93.5
Hello FM 106.4
Vadodara:
Radio City 91.1
Big FM 92.7
S FM 93.5
Vividh Bharathi 93.9Radio Mirchi 98.3
Varanasi:
Radio Mantra 91.9
South Asia FM (S FM) 93.5
Radio Mirchi 98.3
AIR Varanasi 100.6
Gyan Vani 105.6
Vijayawada:
Rainbow Krishnaveni 102.2 fm
South Asia FM (S FM) 93.5 fm
Radio Mirchi 98.3 fm
Visakhapatnam:
Rainbow 102 fm
S fm 93.5
Big fm 92.7
Radio City 91.1Radio Mirchi 98.3
vividh bharthi
Gyan Vaani
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EPILOGUE
1.Monopoly changed to perfect competition
Monopoly of Aakashwani was changed to perfect COMPETITION as it there were more
competitors now. Early 21st
century saw flooding of radio channels in various cities
2. The Communication was in local language using local symbol, gestures and personality
The sub segmentation of any segment was much easier: to study and formulate and do the
promotion activity.
3. New source of conducting CSR activity
4.Marketing Mix changed
Design a product such that it is, easily promotable on Radio.
Odd figure pricing: to attract more and more customer.
Place of marketing of product was easily advert sable on radio.
Radio was itself a major source of promotion.
5. Conclusion
Radio can be prove as a powerful tool for advertising as it could overcome the drawbacks of
other tools of advertising Reaching all areas of the country and a cheap and fast source of
advertising.
Every radio station must be aware of the common errors that occur in implementing these tools:
I. Selecting the Wrong TacticII. Selecting the Wrong Media
III. Insufficient BudgetIV. Poor Research and/or poor interpretation of the results.V. Bad Product
The most important lesson to be learnt is that Successful promotions intersect existing
consumer behavior. A radio station must realize that it is possible to not just rise to the top, but
also stay at the top with continuous efforts.