3. The Marketing Plan
WHAT:
A Marketing Plan is a document that
addresses all marketing activities for a new
release (or product)
WHY: Aligns complex activities & spending
decisions with company objectives and
budget constraints. Supports disciplined,
well-researched approach to a companyâs
marketing process.
Š 2007 musicbizclasses.com
4. The Marketing Plan
A Marketing Plan outlines both strategy and
tactics used to promote recorded music
⢠Strategy long-term, overall approach, to a
business issue, that focuses on the big picture
⢠Tactics the actual problem-solving techniques
Š 2007 musicbizclasses.com
5. The Marketing Plan in 5 Questions
⢠What am I trying to promote/sell?
⢠Who am I trying to reach?
⢠What are the obstacles to achieving
success?
⢠What are the resources I need to
implement my plan?
⢠How will I measure success?
Š 2007 musicbizclasses.com
6. Approaches to the Marketing Plan
Traditional:
T diti l
Push Approach
Based on crafted Brand Messages directed
to targeted consumers
Non-Traditional
Pull Approach
Organic
Word of Mouth
Based on conversations, stories and shared
experiences with consumers
Š 2007 musicbizclasses.com
7. A Record Label Marketing Plan
OutlinesâŚ
O tli
â˘Unique value of particular release/artist
â˘Target A dience
Audience
â˘Marketplace conditions- seasonal
â˘Different marketing and promotional âchannelsâ
channels
or outlets:
⢠Radio
⢠Press- Newspapers, magazines
⢠Internet
⢠TV
⢠Tactics-Concept, Art, Copy, P.O.P (displays,
racks, banners), Advertising,
racks banners) Advertising Publicity
Š 2007 musicbizclasses.com
8. Elements of a Marketing Plan
I. E
I Executive Summary:
ti S
A high-level summary of the marketing plan. Brief
description of product to be marketed and
associated goals, such as sales figures and
strategic g
g goals.
II.
II Situation Analysis
⢠Company Analysis
â˘G l
Goals
⢠Strengths and Weaknesses
⢠Unique Value Proposition
Š 2007 musicbizclasses.com
9. Elements of a Marketing Plan
⢠Sizing the Market Opportunity:
⢠Number/Market Share
⢠Type
⢠Competitor Analysis
⢠Market position
⢠Strengths &Weaknesses
⢠M k t share
Market h
Š 2007 musicbizclasses.com
10. Elements of a Marketing Plan
â˘Climate
Climate
âSWOT Analysis
âPEST Analysis
⢠Political and legal environment
⢠Economic environment
⢠Social and cultural environment
⢠Technological environment
Š 2007 musicbizclasses.com
11. Elements of a Marketing Plan
⢠Customer/Audience Analysis
âT
Target Audience segments:
t A di t
⢠Description
⢠Value drivers
⢠Behavior- How they use product
y p
⢠How to reach them
⢠Price sensitivity
⢠Decision process
⢠Support requirements
Š 2007 musicbizclasses.com
12. Elements of a Marketing Plan
III.
III The Marketing Mix
Overview of strategic approach; details
of the marketing mix (4 P's):
Product
Price
Place (distribution)
( )
Promotion
Š 2007 musicbizclasses.com
13. Elements of a Marketing Plan
PRODUCT
The product decisions should consider the
product's advantages and how they will be
leveraged.
Product decisions should include:
⢠Branding elements
⢠Quality
⢠Scope of product line
⢠Warranty
⢠Packaging
Š 2007 musicbizclasses.com
14. Elements of a Marketing Plan
PRICE
Price decisions include pricing strategy
strategy,
expected volume, and decisions for the
following pricing variables:
⢠List price
⢠Di
Discounts
t
⢠Bundling
⢠Payment terms and financing
options
p
Š 2007 musicbizclasses.com
15. Elements of a Marketing Plan
PRICE
Digital Singles Pricing
Source: âRecord Label Marketingâ, Tom Hutchison
Physical CD Pricing
Š 2007 musicbizclasses.com
16. Elements of a Marketing Plan
PLACE (Distribution)
⢠Decision variables include:
⢠Distribution channels, such as direct, retail,
distributors & intermediates
⢠Motivating the channel - for example,
distributor margins
⢠Criteria for evaluating distributors
⢠Locations
⢠Logistics, including transportation,
warehousing, and order fulfillment
Š 2007 musicbizclasses.com
17. Elements of a Marketing Plan
PROMOTION
⢠Public relations
ub c e a o s
⢠Promotional programs
⢠Conversations/Social media
⢠Advertising, including: how much
and which media
⢠Projected results of the promotional
p g
programs
Š 2007 musicbizclasses.com
18. Elements of a Marketing Plan
PROMOTION: Publicity Planning
Source: âRecord Label Marketingâ, Tom Hutchison
Š 2007 musicbizclasses.com
19. Elements of a Marketing Plan
IV. Fi
IV Financial/Sales Projections
i l/S l P j ti
⢠The Budget
⢠The selected strategy's immediate
gy
effects, expected long-term results, and
any special actions required to achieve
them
⢠This section usually includes forecasts
of revenues and expenses as well as
the results of a break-even analysis
Š 2007 musicbizclasses.com
20. Elements of a Marketing Plan
IV. Fi
IV Financial/Sales Projections
i l/S l P j ti
Š 2007 musicbizclasses.com
22. Measuring Tools in the Music
Industry
Used to measure Sales & Usage Data
and b ild âth chartsâ-
d build âthe h t â
What are consumers buying and listening to?
Two Primary Systems:
âSoundScan= U it S l (retail)
S dS Unit Sales
âBDS= Airplay or spins (broadcast)
Š 2007 musicbizclasses.com
23. SoundScan (Nielsen)
⢠Data system for tracking sales of music and
music video products
⢠Collects sales data from over 14,000 outlets:
--retail (music stores and big box)
--non-traditional (on-line stores, venues, mail order)
⢠In U.S. and Canada
⢠W kl collection; reported on W d
Weekly ll ti t d Wednesdays
d
(previous Monday through Sunday)
⢠Used in Billboard Music Charts
Š 2007 musicbizclasses.com
24. SoundScan
⢠SoundScan categorizes Recorded Music
as Albums, Singles or Video:
ALBUM SINGLES
LP 12" ALBUM LP 12â SINGLE
CD ALBUM CD SINGLE
CASS.ALBUM CASS. SINGLE
DIGITAL ALB DIGITAL SINGLE
DVD AUDIO MAXI CD SINGLE
VIDEO
DVD
Š 2007 musicbizclasses.com
25. SoundScan Registration
⢠Any product with a dedicated UPC/ISRC bar code can be
tracked by SoundScan
â˘UPC- Universal Product Code
(physical product- i.e. CDs)
â˘ISRC- International Standard Recording Code
(digital product- i.e. digital downloads)
⢠Must register your title at least 3 weeks
before sell date
⢠Registration is free
Š 2007 musicbizclasses.com
26. SoundScan Reports
300+ SoundScan reports i l d
300 S dS include:
Store Types (chain, Independent, etc)
Artists
Titles
Genres
Regions
Cities (DMA)
Weekly
Year to Date
Archives
Š 2007 musicbizclasses.com
27. SoundScan Users
â˘Billboard Magazine Charts
â˘Major & Independent Record Companies
â˘Distribution C
Di t ib ti Companiesi
â˘Artist Managers, Booking Agents
â˘Concert Promoters Venue Owners etc
Concert Promoters, Owners, etc.
â˘Online Retailers and Digital Delivery Co.s
â˘Media and Entertainment Research firms
â˘Music Publications and Journalists
â˘MTV, VH1, CMT
Š 2007 musicbizclasses.com
28. BDS (Nielsen)
⢠Data system for broadcast or âairplayâ of music and
airplay
music related media
⢠P
Proprietary di it l system captures d t f
i t digital t t data from 100 million
illi
âspinsâ annually
⢠1,600 terrestrial radio stations, satellite radio and cable
music channels tracked
⢠In140 markets in the U.S. and 30 in Canada
⢠Tracks local stations and ânetworkâ stations
⢠Used to create the Billboard and
Radio Records R di Ai l Ch t
R di & R d Radio Airplay Charts
Š 2007 musicbizclasses.com
29. BDS
⢠BDS categorizes Airplay By:
â Types of delivery: Terrestrial/Local,
yp y ,
Satellite, Cable and Internet
⢠BDS reports include:
â Songs/Artists by:
Formats
Stations
Regions
Dayparts
Š 2007 musicbizclasses.com
30. Other Industry Measuring Tools
Radio & Records:
PromoSquad âHit Predictor Rankings by a panel
Hit Predictorâ-
of music listeners
MediaBase:
Radio Music Charts
Big Champagne:
Extensive reporting on Peer-to-Peer file sharing of
Music, Videos, Games, Software
Š 2007 musicbizclasses.com
31. Online/ Social Media Tracking Tools
Google Analytics/Google Alerts
Trendrr.com
Rockdex.com
BandMetrics.com
B dM t i
Blogpulse.com
Blogpulse com
The Hype Machine Blog
yp g
Š 2007 musicbizclasses.com