Popular in marketing of recording industry
verified elite notetaker
verified elite notetaker
Rosa Bahringer MD
verified elite notetaker
verified elite notetaker
verified elite notetaker
verified elite notetaker
Popular in Film
This 14 page Study Guide was uploaded by MusicBizNotes on Saturday September 26, 2015. The Study Guide belongs to 4620 at Middle Tennessee State University taught by Amy Macy in Fall 2015. Since its upload, it has received 28 views. For similar materials see marketing of recording industry in Film at Middle Tennessee State University.
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Date Created: 09/26/15
Market segmentation process of dividing total market into submarkets based on similarities in a marketing plan the marketing OBJECTIVE sets the GOAL based on the product and market development market segment group of customers with similar responses or lifestyles marketing PROGRAM sets the DAY TO DAY TACTICS to achieve the goal Net sales records shipped minus returns marketing STRATEGY sets how to achieve the goal based on the marketing mix and target consumer 20 Standard reserve within the PampL based on national return percentages is apx Marketing costs cost the record company has the most control over which can impact the pro tability of a release True Behavioristic segmentation deals with consumer patterns and product oyaty ate majority in the diffusion process of music product this group purchases music only after the record contains several hits card price which retail pays for music wholesale price which retail pays for music SRLP suggested price which consumer pays for music List price suggested price which consumers pay for music target market one particular group of potential customers to be targeted billboard39s top 200 album chart based on Soundscan sales Marketing and Sales Department that promotes records in retail promotion dept that secures radio airplay business affairs dept that licenses recordings and samples to third parties AampR Label dept that allocates publishing percentages Artist development label dept that walks the artist through the label process threats and opportunities In Swot analysis which two factors are external to the rm TV or news advertisements pull strategy discount and dating push strategies pull strategy pulls consumers to buy push strategy pushes retail to push the product 18 months when does a record become quotcatalogquot 19000 how many retailers does soundscan monitor sold most records over the counter at retail 1 position on Billboard Album Chart means the record has sold most records over the counter at retail 1 position on Billboard Album Chart means the record has loss leader retailer sells something below cost to attract customers marketing process of planning and executing the product development pricing promotion and distribution of goods from producer to consumer marketing getting the right goods to the right people at the right time with the right price and the right communication and promotion threat challenge posed by an unfavorable trend of speci c disturbance in the the environment that would lead to the demise of the company product or brand trade promotion a push strategy is a strengths and weaknesses ln Swot analysis which two factors are internal to the rm product price place promotion the marketing mix 4 p39s dog In growthshare matrix which makes least money for company cow dog question mark star or problem child cow in growthshare matrix category that best describes and older artist in established genre who has large following vertical integration process of acquiring rms at the next level of distribution laggards ln diffusion of innovations theory the last people to adopt a new innova on sex age income education examples of demographic characteristics artist relations post release contact liaison at label for tour support lifestyle and personality examples of psychographic characteristics behavior segmentation segmenting consumers based on bene ts sought user status heavymedlight and loyalty is known as rotators best way for marketing person to reach this segment of market is through advertisements in specialty music magazines and through having the new artist open for established acts with a similar musical style survivors people at bottom of VALS values and lifestyles market segmentation system in terms of resources nancial educational and health who are concerned only with immediate needs thinkers people in VALS system who are motivated by ideals and have abundant resources rock genre with largest market share in 2008 45 age group with largest market share in 2008 according to RIAA conintues to mimic teens category 1519 According to RIAA the market share of college age consumers shifts back and forth between gender according to RIAA ratio of women to men buying recorded music in past ten years losing market share to quotother storesquot like mass merchants describes market share for quotretailersquot retail records stores non traditional this retail sector had growth in record sales according to 2009 Neilsen Soundscan Summary Universal which conglomerate has highest album sales market share in US EMI which had lowest mkt share of album sales in US Frontline top of the pricing tier called internal marketing audit and environmental scan SWOT analysis involves positively related to the trialability of the innovation rate of diffusion in the diffusion of innovations theory slotting fees when retail store charges manufacturer for shelf space in grocery stores price and position in recording industry the concept of charging manufacturers fore retail space decay one of the 4 phases of a product life cycle introductiongrowth in terms of product life cycle music download format is at this point in time demographics most popular basis of segmenting markets 3 C39s of Pricing consumer based pricing cost based pricing competition based pricing value based pricing computing price based on what the market will bear deal selective market segment that takes the longest time going through process of deciding to purchase product sole users category of behavioral segmentation that requires least amount of advertising and promotion cost of sales in record business manufacturing costs artist royalties publisher royalties does NOT include recording costs sales by DMAGenre Album soundscan chart that is best for determining which markets are best for jazz shipped music minus returns RIAA certi cation is based on shipped music minus returns examples of syndicated industry researchers Arbitron Nielsen SoundScan and BDS Syndicated research gathered periodically exposing trends in same data and is standardized to all companies involved in the industry Radio interviews label publicists are responsible for trade publicity television exposure radio intereviews print interviews but NOT manufacturing of music distribution is responsible for sale of music marketing of music physical distribution of the music but NOT focus group typ of nonrating research that includes playing hooks and new music to a large inhouse set of listeners medium class of communication carriers such as television newspapers etc print least expensive medium based on Cost Per Thousand CPM reporting station station that reports its song list to a chart panel such as Billboard or R amp R print least expensive medium based on Cost Per Thousand CPM reporting station station that reports its song list to a chart panel such as Billboard or R amp R responsibilities of label PROMOTION personnel serve as liason with label work surrounding competitive stations in the area supply promotion product to stations supply information about records to stations they DO NOT buy advertising 1996 Telecommunications Act deregulated the radio industry allowing a single corporation to own multiple stations in one market AC Adult contemporary MUSIC format that has most listenership talk radio is most listened to format cutbycut artist39s personal comments on each song recorded on hisher CD True Billboard magazine is an example of external media Arbitron 1 Data based on diaries from listeners 2 Calculated ratings for radio stations 3 Helps advertisers determine best stations regarding demographics catalog title Record over 18 months old UMVD Based on Soundscan data which dist company has largest marketshare distribution af liate of a 99 download label receives 47 Which entitty received next highest dividend press kit Press kit includes cover or pitch letter music and image biofact sheet press clippings Clear Channel Citadel Cox top three radio conglomerates True radio is nearly twice as large as the recording industry in terms of revenue 18 hours Americans listen to radio TSL Time spent listening about hours per week women 3544 demographic spends the most time listening TSL to radio per week evening radio listeners are more likely to be listening at home than work or car during which daypart morning drive midday afternoon drive evening overnight newstalk AC Spanish top three radio formats internet radio usually free of announcer or noncommercial information gives users genrespeci c music through their PC39s expanding services to be able to stream to wireless devices through the use of 3G networks songs being played are displayed by artist and title on screen BDS Broadcast Data Systems the system used by Billboard to detect each spin of a recording on radio spins number of times a song is played on a radio station in a set time period BDS Broadcast Data Systems monitoring system that uses a digital ngerprint to identify songs recurrents songs that used to be in high rotation but are now on the way down reduced to limited spins press release used to publicize news and events tear sheet page of publication featuring a particular feature of advertisement and sent to advertiser or PR form for substantiation radio spots trade advertising is NOT done through television media type what reaches the widest audience radio media good for short lead time GRP Gross Rating Points measure of TOTAL WEIGHT OF ADVERTISING that derives from a particular media buy gross impressions measure of total media EXPOSURE the sum of AUDIENCES of all vehicles used in a media plan CPM Cost of reaching 1000 in the mediums audience electronic data interchange process that automatically reorders inventory from the distributor markup when setting prices retailers think about this since they start with costs and work upwards margin when thinking about pro tability retailers think about this since these are the funds leftover to cover expenses as well as account for pro t word of mouth most credible and effective form of persuasion in in uencing customers to purchase a product getting radio airplay not a normal role of street team members political campaigns use of street teams is said to be like getting radio airplay not a normal role of street team members political campaigns use of street teams is said to be like buzz marketing using high pro le people orjournalists to talk about an artist viral marketing any strategy that encourages people ot pass along a marketing message to others creating the potential for exponential growth in the message39s exposure and in uence street team marketing organizing and motivating volunteers to work in personal outreach locally evangelist marketing cultivating key opinion leaders and tastemakers to spread the word about the artist harvesting collecting email addresses by visiting user groups and copying email addresses from their message board URL means of identifying the web site location on the internet scratch videos use pieces of lm synchronized with the tempo of the music performance videos use concert footage abstract videos use special effects storyline video involves actors or the artist acting out a part ways a music video can help publicity dept uses them to get placement on TV shows radio promotion dept uses them to create interest at radio and increase airplay new media departments use video on website regional branch in distribution company one stop wholesaler that stocks products from many different labels distributor company that distributes product to retailers cume total of all different listeners who tune into a particular station over a speci ed time period AQH average quarter hour number of people listening to a station for at least ve minutes during a 15 minute period marketing th performance of business activities that direct the ow of goods and services from the producer to the consumer marketing mix blend of product distribution promotion and pricing strategies designed to produce mutually satisfying exchanges with the target market 4 P39s of marketing product goods or services designed to satisfy a customer39s need pricewhat customers will exchange for the product promotion informing and motivating the customer place how to deliver and distribute the product product positioning customer39s perception of a product in comparison with the competition Product life cycle PLC course a product39s sales and pro ts take over lifetime of the product lifetime of product sales window and market for a product from inception to demise introduction growth maturity decline stages of product life cycle introduction slow growth stage growth stage rapid acceptance into marketplace and pro ts increase maturity leveling in sales because market is saturated decline sales fall off and pro ts are reduced prices often cut to maintain market share 1218 months life cycle of an average album release diffusion of innovations process by which use of an innovation is spread within a market group over time and over various categories of adopters adopters consumers who have purchased and used the product AIDA attention interest desire and action AIDA 2 awareness information decision and action involvement amount of time and effort a buyer invest in search evaluation and decision process of consumer behavior innovators rst 25 of the market to buy a new product above average income and cost is not a concern early adopters next 135 adopt once the innovators have demonstrated the new product is viable early majority next 34 weighs merits before deciding to adopt late majority next 34 adopt when most of their friends have laggards last 16 of the market generally adopt only when they feel they have no choice hedonic of or relating to or marked by pleasure hedonic of or relating to or marked by pleasure Star cash cow problem child dogs Boston consulting group method for classifying products stars high growth high share entities or products require heavy investment to nance their rapid growth cash cow generate a high rate of return for little ongoing investment very pro table problem child aka question mark is a business unit that requires lots of cash and generates little return low share products in a high growth market dogs low growth low market share units with no promise of success cost based pricing cost of manufacturing and mechanical royalties are considered xed once the number of units to be manufactured is determined and the recording costs have been computed marketing are variable costs competition based pricing sets prices based on those charged by company39s competitors value based pricing aka consumer based pricing uses buyers perceptions of valuea reversal from cost plus approach push directed toward tradepush through distribution channel pull marketing directed toward consumers contractual distribution independent members contract with each other setting up agreement for one company to distribute goods made by the other company administered distribution dominant channel member distributes products developed by a smaller independent manufacturer vertical integration label uses distribution system owned by the parent label forward vertical integration manufacture owns its distributors retailing activities related to the sale of the product to the nal consumer for personal use
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