Marketing

Marketing-a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others The Marketing Plan- is a master plan or set of steps used to take a product and position that product so that it sells. In the music industry beside selling the musical product you are also trying to create an awareness of your product, and establish brand loyalty.

Questions ?

What markets are we trying to serve? What are their needs? What product are we trying to sell? At what price do I need to sell the product to make a profit? Where do I need to place the products soable to purchase it. How do I inform, motivate and remind the customer about the product.-promote

4 Ps
Product- good or services designed to satisfy a customers need Price- what customers will exchange for the product Promotion-informing and motivating the customer Place-how to deliver and distribute the product.

Product
Defined historically in the music business according to Music Genre-(Rap, Rock, Pop) Configuration (Records, CDs, Vinyl, Cassettes, Digital Singles) Or The artist- Lady Gaga, Usher The song- copyright

Record Company Promotion

Methods used to encourage the consumer to buy a particular release

Promotion
Goals : Inform Motivate Remind the consumer to purchase the product

Record Promotion
Record

label means "getting airplay" primarily on radio or through video shows to get the public aware of the record

promotion- at the record

Marketing Plan
A strategy on how the recording will be promoted to various targets (outlets) including radio, press, retail, advertising, television, and streets/grassroots initiatives. People involved at record company include: Marketing People, Radio Promoters, Publicists, Advertising Managers.

Marketing Plan Objectives:

Raise Awareness of your Artist/Product Sell units- generate revenue *Establish Brand Loyalty

Create

a fan base Maintain that fan base Expand the fan base

Common Target Outlets today:

Publicity Advertising Radio Promotion Music videos Grassroots marketing New media marketing Tour Support Special markets and products

Marketing Plan- Targets

1. Radio Purpose- to obtain radio airplay for your product Radio airplay is as essential to commercial popular music as is record sales and live performance. Radio airplay-one of the hardest promotional areas to crack. The effectiveness of a record promotion person hinges on the strength of the relationships she has with radio programmers.

Radio

The barriers to entry are enormous.

1. enormous amount of product in marketplaceeven at college level. 2. major market radio stations dominated by product from the big 4. 3. radio syndication 4. cost- independent promotion, promotional tours 5. legal restrictions imposed by governmental regulations-payola, language

Radio

Radio includes

Terrestrial- ex- Kiss FM, WCBS, NPR Internet-ex- Spotify, Emusic, Satellite-Sirius

Reporting Stations Mailing, Telephone Follow-ups Purpose- to try to obtain radio airplay at those stations where the record label has an established relationship.

2. Publicity

Purpose
(1) to get the most possible coverage for your artist/product in a broad range of media
Centered around creating press (print) opportunities and television (broadcast media) appearances. Includes letting the public know when artist is touring ; when the artist's next release is expected; obtaining TV appearances- from talk shows or sitcom appearances to arranging award presentation opportunities.

3. Retail

Purpose- to encourage sales, provide incentives

to keep prices down, or draw attention to the product.
Two types1- Programs aimed at members of the distribution in return for prominent display in the store, or co-op advertising- (Push Strategy) 2) Programs aimed directly at consumers -street marketing, snipes, in-store displays, retail visits, listening booths or stations, create your own music stations- (Pull Strategy)

channel, such as wholesale distributors and retail outlets, - reduction in price for an order of recordings

Retail

One Sheet
gives

both the distributors and retailers a quick read or overview on all the pertinent information about your recording. Purpose is to convince retailers that this is a release to push because it has good planning and marketing behind it. Also can be used for radio promotion.

4. Advertising

Purpose- to purchase time (radio, tv, internet) or

space (press) to create an awareness of the product and a sense of urgency in your target audience to buy your product. - Effect of combining music and ads has been overwhelmingly positive. - Considered to be expensive and sometimes of less credible value because the public might perceive it as hype - Not easy to measure its effectiveness- but Soundscan and radio charts help.

Advertising (cont)
Two major types- trade vs consumer Radio, television, billboards, direct mail,magazines, newspapers, the Internet and mobile media. Trends

New

Media Advertising-Mobile Phones, Computers

- positives-it is interactive, dynamic instead of static, highly targeted and specialized, and multimedia.

Advertising
Internet Advertising sponsored links and banner ads

appears on targeted content sites, such as online versions of magazines, to pitch products available on ecommerce sites.

Payment Methods- CPC (Charge per click) or PPC (Pay Per Click).Advertisers pay the website owner only when someone clicks on the ad and then goes to advertisers web page.

Mobile Advertising
Advantages- interactivity, its personal and personalized, omnipresence or availability, multimedia- ability to engage sight, sound and motion. Disadvantages- omnipresence, cost to consumer-depends on type of plan, size of screen, already too much going on.

5. Video and Television

Purpose- to provide a visual image of the artist that complements

the musical product and thus creates a mental picture of the artist in the minds of the consumer. A. Video Promotion -a direct correlation of video airplay to sales of your product.

-Record company - the three functions of music video are: 1) provide programming for video channels, 2) promotional vehicle for new records, 3) To create products to sell in the record store or to consumer directly- DVD compilations, Live Performances

Video and Television-cont

1) Regional Video Shows 2) Streaming performances to your cellphone- Verizon, etc. 3) Internet-you.tube.com, Yahoo! Video, VEVO Itunes- downloading of music videos to your IPOD. 4) local public access channels, college TV station, streaming webcast shows. 5) Viral Videos- less expensive video format that is edgy, and alternative to high production costs videos on cable tv. (Blair Witch Project, OK Go, )

Video and Television (cont)

B. Television Promotion-Television appearances directly affects record sales. (Oprah Effect) -Method works well for a new artist and artists: 1) who dont obtain a lot of record airplay but who are known to have great live performances or 2) who have crossover appeal & endorsed by a major star-Ellen, Jay Leno, Jimmy Fallon Additional opportunities to promote your artist: -guest appearances as themselves -actors portraying someone else-Eve, Will Smith, . - who provide the music to a television show- theme song, perform the theme song, write all the music for the show including its background music. - have their own Holiday specials, and musical specialty shows, reality series, concert performances, behind the scenes

6.Live Performances & Touring

product into a live presentation that is directly or indirectly in front of your target audience. Method can also be used : 1) For the artist to earn money- Touring 2) Promote product the artist presently has on the market, as well as other products the artist has on the market- prior releases, videos, tshirts, etc. 3) Promotional tool to introduce a new artist to the public, i.e. showcasing.

Purpose- translate the music on the recorded

Live Performances & Touring

4) As a means for record company or outside companies to show support for artist by providing dollars or in-kind supportsponsorship, merchandising. 5) as a news event, which can then serve as the basis for a publicity campaign. (an upcoming live appearances in a region or locale is an ideal story for a publicist to pitch to editors and producers of local newspapers and electronic media) 6) to introduce new product to the public by an established artist .

7. Internet or New Media

Purpose- to exploit the opportunities available

via the internet to promote your artist or your product. Includes: creating a website Email connecting your fans via social networking sites (facebook, twitter, tumblr) sell product Provide services

Internet

Caveats: 1. Dont make the Internet your entire marketing strategy. Internet marketing should not be a substitute for traditional promotion. Two should work together, creating synergy. 2. Build a good website, but remember must maintain your website, 3. Social media- may have to hire social media strategist, or companies that can assist you 4. Incorporate the artists website address into everything you do online and offline.

8. Grass Roots Marketing

product at the street or grassroots level in a cost-effective manner. Three types:

Purpose- To assist you in marketing your

a. Street Teams A marketing or street team is a group of people (team people or marketing representatives) located in different areas who assist you in executing your marketing plan and expanding its reach to other territories.

Grass Roots (cont)

1. Street Teams A marketing or street team is a group of people (team people or marketing representatives) located in different areas who assist you in executing your marketing plan and expanding its reach to other territories . One-to-One personal relationship is the key.

Grass Roots Marketing (cont)

2. Guerilla Marketing means using nontraditional marketing tools and ideas on limited budget to reach a target market. Application to the record industry- street teams and e-teams. Includes: Posting in chat rooms, handing out music samplers, and giving promotion buttons and bumper stickers at the competitions concerts.

Guerilla Social Media Marketing

Extends guerilla marketing to the new media landscape. Understand that social media is a tool to help you connect and communicate directly with your customers and prospects in real time.

Guerilla Social Media MarketingTools

Includes any of these activities Social Networking- Facebook, Twitter, Linked In, Nano-Blogging- Twitter, Status Updates, Friendfeed, URL Shorteners Third-Party Social Networking ApplicationsTweetdeck, HootSuite,Ping FM Photo Sharing-Flickr,

Guerilla Social Media Tools (cont)

Document Sharing- Slideshare, Scribd Audio and Video- Podcasts,YouTube, Vimeo, Famecast-Music Only site for emerging artist) Real Time Social Media- Skype, Ustream, Justin.tv, webcasting and web conferencing, Screencasting Website and Blog tools-Your website, forums, Wordpress

Guerilla Marketing
Third type: 3. Word of Mouth- Use of Buzz Agents, Independent Promotion Companies ,Social Networking Sites (myspace, purevolume, youtubes. ,facebook,etc.)

9. Lifestyle Marketing

persons life-marketing that appeals to that persons activities, interests, and opinions. -- Objective- If you can connect your music with someones day-to-day activities and interests, then you will accordingly have a fan for life. - Primarily involves creative and unique promotions at non-music outlets known as lifestyle accounts

Purpose- to introduce your music into other areas of a

Lifestyle Marketing (cont)

Examples

include: sale of music at coffeeshops, skateshops, clothing stores, smokeshops, tattoo parlors, nature shops, health clubs, dance clubs, bars, etc. Two examples- Starbucks- Music Compilations, genre specific -New Age Music at Starbucks , Chefs StorePutamayo Music

10. Sponsorships

Purpose- to obtain monetary or in-kind promotional help

to support your band, CD Release, Tour. Whether you are a band, organizing an event or fundraising for an organization, sponsors can offer you crucial financial and/or promotional support. The key is if you have people coming out to your shows or to your event you are attracting people that someone (a sponsor) might want to market and promote to as well. Music fans are a market segment that offer value to a wide range of companies. Ex- Bad Rabbits, The Benjamins

Sponsorships Cont
Popular

sponsors for musicians include: Liquor and Soft Drink Companies Fragrance and Cosmetic Companies Music Instrument Companies Clothing Companies- Vans, RoccaWear, Ralph Lauren, Radio Stations Concert Promoters/Venue Operators

11. Cross Promotion, Special Products, Special Markets

business entity to simultaneously promote each others products to each others target audience. Costs are shared by both partners and each benefits by having access to each others customer base. A successful cross-promotion is one where the partners cater to the same demographic, but reach different segments.

Purpose- To partner with another artist or

Cross Promotion, Special Products, etc

Type

of opportunities include:

artist to artist- special appearances on other artists projects product endorsement- 50 Cent-Vitamin Water, Rihanna-Cover Girl, Diddy-Ciroc Vodka Cross-media- artist in a film, artist on a TV Show, artist on Broadway product created to appeal to a specific sub-target market-Razor & Tie Kidz Pop Series