Chapter 3

Overall Music Marketing Strategy

Marketing an artist or any recorded music product involves a marketing plan with several elements; the resources available for marketing and the particular marketing goals of the project dictate the relative importance of each element. For instance, a local band with limited resources should probably focus more on developing a market in the geographic area where the artist performs, whereas an international star should focus more on the mass media and wide distribution. The components currently being used to market artists include the following:

For the do-it-yourself (DIY) artist or small indie label, priority is given to those marketing elements that are less expensive but involve more time: tour support, publicity, grassroots marketing, and Internet marketing.

PUBLICITY

Publicity consists of getting exposure for an artist in the mass media that is not in the form of advertising but is editorial content. In other words, publicists are responsible for getting news and feature coverage for an artist as well as appearances on television. These tasks include, but are not limited to, the following:

The one exception is radio airplay. The publicist is not responsible for getting songs played on the radio. That job would fall to the radio promoter (described in a later section of this chapter).

For publicity tools, publicists rely on press releases, biographies (bios), tear sheets (copies of previous articles), a discography, publicity photos, and publicity shots. It is the publicist who writes most of the copy for these items and prepares the press kit, although other branches of a record label may actually use the press kit in their marketing functions. Publicists are also responsible for media training the artist, for setting up television appearances and press interviews, sending out press releases and holding press conferences. They target a variety of media vehicles, including:

Small labels and DIY artists focus more on local media, especially in the markets where the artist performs and has a following. The marketing person for the artist will reach out to local daily and weekly newspapers, and local radio and TV stations for coverage of performances in the local market. Coverage is more likely if the marketer targets the music or entertainment writer or editor for each local publication. By offering up a press kit, promotional copies of recordings, concert tickets, photos, and access to the artist for interviews, the DIY is more likely to find success with local media coverage. Morning and midday television news shows are great possibilities for exposure, but radio interviews are more difficult to land because of the value of morning drive time on commercial radio and the fact that many morning shows are now syndicated. College radio and other non-commercial stations (NPR) are the exception (see section on radio promotion in this chapter).

ADVERTISING

Advertisers determine where to place their advertising budget based on the likelihood that the advertisements will create enough of a sales increase to justify their expense. Advertisers must be familiar with their market and consumers’ media consumption habits in order to reach their customers as effectively as possible.

Consumers are targeted through radio, television, billboards, direct mail, magazines, newspapers, and the Internet. Consumer advertising is directed toward potential buyers to create a “pull” marketing effect of buyer demand. Trade advertising targets decision makers within the industry, such as radio programmers, wholesalers, retailers, and other people who may be influenced by the advertisements and respond in a way that is favorable for the marketing goals. This creates a “push” marketing effect.

Advertising is crucial for marketing recorded music, just as it is for other products. The primary advertising vehicle in the recording industry for the major labels is local print sources, done in conjunction with retail stores to promote pricing of new titles, and is referred to as co-op advertising. But in addition to local print media, the record industry relies also on magazine, radio, television, outdoor, and Internet advertising. The impact of advertising is not easy to measure because much of its effect is cumulative or in conjunction with other promotional events such as live performances and radio airplay. SoundScan has improved the ability to judge the impact of advertising, but because marketing does not occur in a vacuum, the relative contribution of advertising to sales success remains somewhat of a mystery.

The most complex issue facing advertisers involves decisions of where to place advertising. The expansion of media has increased the options and complicated the decision. The chart in Table 3.1 represents a basic understanding of the advantages and disadvantages of the various media options.

Table 3.1 Comparison of media

Advertising is beginning to shift to the Internet for the second time. After initial efforts by advertisers to reach consumers on the Internet failed to produce the expected results, advertisers pulled out of the Internet, contributing to the Internet bubble burst in 2001. Now, advertisers are returning to the Internet as pay-per-click advertising has offered a new way for advertisers to pay only for those ads that lead to consumer action.

The developing DIY artist is not likely to benefit much from advertising of their recorded music in terms of cost per unit sold, but they can benefit greatly from advertising locally for live shows. The budget-conscious entrepreneur can parlay a small advertising budget into a marketing campaign. Suppose a club owner has a weekly budget of $350 to advertise their club and that week’s performer. Instead of the standard club ad that normally runs each week, you can request that the ad contain additional information on your recorded products for sale—at the local store. Then, in exchange for promoting that store both in the advertisement and at the venue, the store owner may consider contributing to the advertising budget for the week and/or co-promoting the appearance. An “in-store” meet and greet can sweeten the deal and generate goodwill with the store manager, who may grant premium positioning of product in the store. Now, the original $350 budget has been parlayed into a marketing plan that is likely to draw more attention from the local media. (It doesn’t hurt that you now have a more substantial budget to advertise in those media.) A word of caution though: in support of the local store selling your CDs, you should not undercut their retail price with your own sales at the gigs—keep your retail price consistent.

RADIO PROMOTION

The impact of radio airplay on record sales and artist popularity is still the most powerful singular force for breaking new artists. The reliance on radio to introduce new music to consumers causes record marketers to focus a lot of resources on obtaining airplay. This is done through the promotion department, where radio promotion people engage in personal selling to influence radio programming. Radio program directors make the key decisions on which music is played on the radio station and which is rejected. As a result, record labels and artists lobby radio program directors to encourage them to play their music. Decisions by radio programmers are the keys to the life of a record and have become the basis for savvy, smart, and creative record promotion people to carry out this lobbying effort.

Getting radio airplay is a challenge for all but the top music stars. Even the major labels spend a great deal of time and money to get airplay for their artists, sometimes without much success. Here are the steps based upon an article by Vivek Tiwary (2008) that an unsigned or indie label artist can take to generate some success:

New forms of radio broadcasting, including satellite radio and Internet radio, have opened up the possibility of getting airplay for lesser-known artists. The addition of several thousand new radio stations, many with specialty formats such as unsigned bands or regional music, has increased the opportunities for emerging artists. Many of these newer formats have less restrictive and longer playlists, so competing for airplay is not as difficult.

RETAIL PROMOTION

Radio is the most important marketing tool for influencing consumers to buy new music. So it would seem that music retailers would use radio as their primary advertising vehicle to promote their stores and product. But that is not the case. Print advertising is the music retailer’s primary promotional activity.

Promotional efforts inside record stores highlight different releases to motivate consumers to purchase the titles being promoted. It is often said that the last ten feet before the cash register is the most influential real estate for promotional activities. Whether it is listening stations near a coffee bar outlet or posters hanging in the front window, a brief encounter within the store’s walls will quickly identify the music that the store probably sells (Hutchison et al., p. 214).

Featured titles within many retail environments are often dictated from the central buying office. As mentioned earlier, labels want and often do create marketing events that feature a specific title. This is coordinated via the retailer through an advertising vehicle called cooperative advertising. Co-op advertising, as it is known, is usually the exchange of money from the label to the retailer, so that a particular release will be featured. The following are examples of co-op (reprinted from Hutchison, et al., 2006, p. 214):

As a larger percentage of record sales moves to the Internet—for physical sales as well as downloads—many well-known retailers have been forced to close their doors. Borders is one example. Other retailers have simply reduced the amount of floor space dedicated to recorded music and have begun to diversify if they had not already done so. In 2007, the National Association of Recording Merchandisers (NARM) awarded the large retailer of the year award to Amazon. com, the first for an online retailer. In 2008, iTunes surpassed Walmart as the #1 retailer in the U.S.

After years of cookie-cutter products in stores, many chain stores now allow the local store manager some discretion in determining product mix that appeals to local shoppers. The DIY artist should not hesitate to contact local managers of large chain stores in markets where there is potential for sustained sales. But remember, you should make sure the store’s efforts are rewarded by supporting their cooperation with yours.

MUSIC VIDEOS

In 1981, MTV launched the first music video channel and gave record labels a reason to produce more of the new entertainment format. Other genre-specific channels soon followed, such as Black Entertainment Television (BET), VH-1 for adult contemporary music, and Country Music Television (CMT). It became evident early on that music video exposure was beneficial to developing artists’ careers and promoting their music. Stars like Madonna and Michael Jackson owe a lot of their fame to video exposure. Telegenics became an important aspect in artists’ careers, forcing record labels to concentrate on signing artists with visual appeal.

That being said, the costs of producing a music video are astronomical, and record labels must weigh the benefits of creating one against the additional costs. Additionally, the plethora of music videos crowded the airwaves by the early 1990s, so that producing a music video did not automatically guarantee airplay on the major video outlets.

Videos remain an important promotional tool, if not for consumer promotion, then to showcase the artist to booking agents for TV shows and concerts. The rise of YouTube and other online video outlets has spurred a new kind of video format that is more edgy and an alternative to the slick Hollywood-style videos on cable TV. It’s called the viral video, but virility is but one component. To begin with, many of the successful viral videos were not actually made by hobbyists but are produced to give that appearance—like the movie the Blair Witch Project. Then, because the videos seem to come from “the street” but have interesting qualities, they are passed around as consumers get the impression that they “found it first” and want to share this nugget with their friends. If they had the impression it was a corporate-sponsored mass media product, they would probably not bother with grassroots “sharing” because they would assume everyone would be exposed to it soon enough. Some type of video presence is now recommended for all artists regardless of the level of their career or marketing budget. The success of YouTube and the shift in consumption of video entertainment programming from broadcast and cable TV to web-based on-demand viewing has led to a proliferation in video-on-demand services and opportunities for artists to place videos. High end sites like Vevo and Hulu offer programming from the major media companies. Independent artists may find more success with services like Vimeo and YouTube.

GRASSROOTS MARKETING

Grassroots marketing, sometimes called guerrilla marketing or street marketing, consists of using nontraditional marketing tools in a bottom-up approach to develop a groundswell of interest at the consumer level that spreads through word of mouth (WOM). Diffusion of innovations theory discusses the role of “opinion leaders” or trendsetters who are instrumental in the diffusion of any new product, trend, or idea.

Figure 3.1 Factors influencing music purchases

(source: Hutchison, et al., 2006)

In grassroots marketing, these opinion leaders are targeted, sometimes by hiring them to work for the artist or label, and their influence on their peers is exploited to promote new products and trends. Groups of trendsetters that become a part of the marketing establishment are called street teams. Sometimes it is enough to have the street team members adopt the new styles or consume the products visibly in the marketplace (such as drinking Sprite or wearing a new outfit). This peer-to-peer marketing is very influential, especially among younger consumers. Record labels commonly have grassroots marketing departments who manage street teams in various geographic locations around the country.

On the Internet, the concept of street team has been expanded to include using these same peer-to-peer marketing principles to reach out to consumers in chat rooms, on message boards, and in social networks (see Chapter 12).

INTERNET MARKETING

Internet marketing is the focus of much of this book. This section concentrates on the use of Internet-related sites in other aspects of the marketing plan. It is common these days for every television show, radio station, and print publication to host its own web site. Often these sites can be used for interactive marketing campaigns, such as contests. Contestants who appear on “American Idol” get their weekly affirmation from viewers who log on to the Internet or use their cell phone to cast their votes. Marketing for artists and record releases often incorporates a web component for each media event, whether it’s to drive traffic to the media vehicle’s web site or to encourage fans to sign up for information or prizes. A debut of a new video on BET can be coordinated with a promotion on www.BET.com where fans enter contests, get free music, purchase priority tickets, or participate in other promotions. In-store autograph signings by an artist can be publicized on the retailer’s web site. Tour schedules can include links to each of the venues so the concert attendee can learn more about the venue and its location (where to sit, where to park, etc.).

So each aspect of a marketing plan, whether it’s coverage in a particular media vehicle, tour support, or supporting an album at retail, should contain an online counterpart to make the experience interactive for consumers and to drive traffic to the media or retailer’s site.

TOUR SUPPORT

Tour support is money or services that a record company provides to help promote an artist and ultimately sell more records. This is one aspect of marketing that is crucial for independent artists and those on indie labels. Generally, the marketing budget does not allow for retail product placement, radio airplay, or advertisements. So the indie artist must rely on touring to build a fan base and generate record sales. Tour support consists of contacting local media and retail in each market where the artist is to appear and providing any promotional materials and support necessary, including appearances. Aspects of tour support may be handled by publicists and the sales department of a label. The publicist is responsible for getting local media coverage and arranging for the artist to appear for interviews and impromptu performances on TV and radio. The sales department is responsible for setting up retail promotions and in-store appearances by the artist for autograph signings.

SPECIAL MARKETS AND PRODUCTS

With traditional record sales on the decline, labels and artists are always looking for new ways to make money from selling music, often referred to as special markets and special products. Getting songs included in a movie, on a TV show, or in a commercial are some examples of special markets. Compilations and samplers are special products. Retailers create “branded” CDs that are special editions available only through the sponsoring retailer. This concept is popular with all types of retailers, not just record retailers, because it draws traffic into the stores. Hallmark, William-Sonoma, and Starbucks are nontraditional retailers who use special products to draw customers to their retail establishments. In 2007, the Eagles decided to release their new album only in Wal-Mart stores. In exchange for the exclusive opportunity to offer the album, Wal-Mart spent a lot of money promoting the album that otherwise would have been spent by the record label—or, in some cases, not spent at all.

Local artists have been known to band together to create a sampler or compilation album featuring up to a dozen artists (Suggs, 2011). The concept helps artists share the costs of manufacturing and exchange their fans with those of other artists on the project. Generally, each artist puts up their portion of the initial expenses for manufacturing and covers their own production costs. Each artist then gets an equal number of CDs to sell at their gigs or local stores.

Figure 3.2 CD cover for compilation album

(courtesy of Del Suggs)

CONCLUSION

The promotional aspects outlined in this chapter represent the traditional marketing methods that record labels and independent artists have employed to sell their products and promote their artists. As is evidenced by the rest of this book, the old-school marketing techniques are giving way to a new type of marketing that incorporates the latest in communication and entertainment technology, and that is keeping up with the rapid pace of innovation. But, old habits die hard.

Bibliography

Farrish, B. (2009). Radio Airplay 101—Why you have to promote to radio. http://www.radio-media.com/song-album/articles/airplay15.html

Hutchison, Tom, Macy, Amy, and Allen, Paul (2006). Record Label Marketing. Focal Press, Oxford,UK.

Suggs, Del (2011). Personal interview.

Tiwary, V. (2008). Press and Publicity. StarPolish. http://www.starpolish.com/advice/article.asp?id=33