Chief Executive Officer

The chief executive officer (CEO) works on a company’s long-term strategies and strategic partnerships; provides leadership to position the company at the forefront of the industry; develops a strategic plan to advance the company’s mission and objectives; and promotes revenue, profitability and growth of an organization. The CEO’s job is setting strategy and vision, building culture, leading the senior team and allocating capital. Keep in mind the CEO is a visionary and is constantly building a strong coalition of supporters.

Figure 12.1 Team

President

The president deals with day-to-day operations and bottom-line performance. This includes:

1. Being responsible for all the label activities.
2. Developing a business plan to advance the company’s mission and objectives and to promote revenue, profitability and growth.
3. Overseeing company operations to ensure production efficiency, quality, service and cost-effective management of resources.
4. Planning, developing and implementing strategies for generating resources and/or revenues for the company.
5. Identifying acquisition and merger opportunities and directing implementation activities.
6. Approving the company’s operational procedures, policies and standards.
7. Reviewing activity reports and financial statements to determine progress and status in attaining objectives, and revising objectives and plans in accordance with current conditions.
8. Evaluating performance of executives for compliance with established policies and objectives of the company and contributions in attaining objectives.
9. Promoting the company through written articles and personal appearances at conferences and on radio and TV.
10. Representing the company at music industry events, committee meetings and at formal functions.
11. Promote the company to local, regional, national and international organizations.
12. Build a fundraising network using personal contacts, direct mail, special events and foundation support.

Legal Department

The legal department handles all contractual issues and other legal responsibilities.

Marketing Department

The marketing department is responsible for creating the overall marketing plan for every record the label is releasing. They are also involved in coordinating all the promotion, publicity and sales campaigns that the label is committed to.

The department is responsible for achieving a high growth in visibility, branding the labels and artists official music sites, and digital and music business. Use of online marketing techniques such as SEO, paid search, online advertising, online PR and blogging to drive qualified leads to the labels website is one of the main responsibilities. In addition, the department should create and manage relationships with PR agencies and partnerships with music press and publications to drive musicians and labels to the website from offline communication. They also work closely with sales managers, internal interactive and design teams, and our product development teams. They focus on design and develop channel marketing strategies to recruit partners (including web designers) and agents to resell the label as the cross-promotion solution to their clients’ needs. Usually start-up budgets tend to be low along with limited resources, so the marketing team has to get creative in order to target and acquire customers that deliver a strong lifetime value to the label. Developing and managing customer communication plans to ensure customers refer new business and retention is key.

Other duties include managing (number of live sites), sales per site, traffic per site, retention and target cost of acquisition. Inherit and further develop marketing strategy by developing and implementing quarterly tactical plans. Managing marketing budgets while leading the marketing team to achieve the marketing targets. Responsibilities also include managing relationships with suppliers in the fields of PR, promotion and events managements to achieve targets; building the brand and maintaining brand integrity. The overall goal is always develop and manage key channel marketing programs, customer referrals and customer retention.

Marketing Objectives

The keys to success in staying on path for their marketing objectives are:

1. Ensure that each project achieves and sustains a position on industry music charts.
2. Release and promote four singles and accompanying music videos, in addition to each full-length CD/digital album track, creating revenue streams for each album project.
3. Utilize a three-phase marketing and promotion plan.
4. Hire independent record promoters or establish promotions internally to cover each of four separate regions of the US.
5. Utilize teams of publicists to coordinate print advertisements and artists’ public appearances.
6. Support retail and radio promotional efforts linked to each release.

Sales and Distribution

The sales and distribution department is the “foundation” of every department of the label in that it is critical in producing overall sales for the company by having a solid sales and distribution platform in place. Key personnel in this department look to add retail support to major chains such as Best Buy, Target, FYE, Barnes & Noble; independent record stores such as Amoeba Music; one-stops, such as Alliance and Super D; rack jobbers, such as Anderson Merchandisers and digital music aggregators such as The Orchard.

The sales department oversees all the digital music distributors/digital aggregators and retail distribution channels and activities of the label, and concentrates on building relationships with the key record store chains and other mass-market retailers. The sales staff coordinates their efforts with the major label’s distribution company, as well as communicates regularly with the promotion and publicity departments at the label.

The label liaison is the person who coordinates the business of the major label’s distribution company with the needs of their parent record labels. Street dates (the date that a new release goes on sale at music retailers) must be approved by the label’s distribution company.

Retail Co-op Advertising

Traditional distribution and new music aggregators/digital distribution to music-related retail and alternative platforms give the label the opportunity to reach music consumers throughout the world. The label should closely coordinate product launches and utilize the distributor’s clout with retailers to design specific strategies for enhancing advertising and marketing presence within retail establishments. These strategies will focus on point-of-sale advertisements, in-store advertising opportunities, print, radio and television co-op opportunities.

Alternate Distribution Outlets

Additionally, the label should examine all prospects of distributing products through network marketing channels. The recent explosion of network marketing concepts has produced millions of distributors and consumers worldwide, providing an effective means to reach the public. The distribution breadth of individual companies will be evaluated to determine if access can be gained to selected target markets. Furthermore, the label should distribute its products throughout the distribution networks, one-stops and retail association.

Artist and Repertoire (A&R)

The artist and repertoire (A&R) division of a record label company is responsible for scouting and artist development. It is the link between the recording artist/act and the record label, and generally helps with the artistic and commercial development of the label’s artists. An A&R person is often required to handle contractual negotiations, find songwriters and record producers for the act, schedule recording sessions and locate and sign new talent. They work with the artist in song selection, choice of producers and recording studio selection and they communicate with the label’s business affairs department to make sure all the paperwork and accounting issues involved with the actual recording of an act’s record are set up properly. In short, the A&R department can serve as a liaison between an artist and all the other departments at the label. Duties include:

1. Auditioning demos (solicited, as well as unsolicited, depending on record label policy). If interested, asking to see artist perform live.
2. Attending live shows at clubs, showcases, concerts and other venues. Also visiting artist/band website and social networking sites like Twitter and Facebook.
3. Following leads from any “buzz” created by artists.
4. Checking industry insiders (managers, agents, attorneys, concert promoters, label promo reps, retail contacts, trade and consumer press tips, regional “scenes” or other sources).
5. Watching for talent on other labels in terms of their contracts expiring.
6. Evaluating talent and matching with potential audience tastes.
7. Signing talent to label with executives’ approval.
8. Searching for new songs for existing talent on the label.
9. Coordinating label relationships for an artist, once they are signed to the label.
10. Providing creative input and direction on artist’s material.
11. Finding suitable producers and recording studios.
12. Planning and monitoring recording budgets with the business affairs department.

Promotion

Promotions is the most important part of any label or artist, which is why this department goal is all about raising awareness to the consumer. The overall goal of this department in promoting music is to show the consumer your music exists, make them aware of the music, artist and label and convince them to buy it. The department utilizes college reps as brand ambassadors, street teams, implement college and commercial radio campaigns, purchase retail co-op advertisements and other sales aids, and look to add tour and show support.

1. The promotion department’s primary goal is to secure radio airplay for their company’s new releases. Their ability to get songs played on the radio is central to the success of the whole company. The promotion department is closely connected to and constantly communicating with other departments within the label to make sure that all strategies being used to market and sell an artist’s record are working together properly. Soliciting videos to MTV, VH1, YouTube and other music-oriented television networks, platforms and programs may also be the responsibility of this department. At some labels this job is a separate department, or part of the new media department.
2. The new media department produces and promotes the music videos for the label’s artists that are shown on MTV, VH1, etc. This department also oversees some promotions and marketing opportunities on the Internet that use the audio and video technologies available from online hardware and software sites that support music.

Online Marketing

In response to the growing popularity and necessity for a presence on the Internet, online marketing is a must for all labels in maximizing promotional efforts. The key is to utilize the latest web technology in making online marketing efforts effortless.

Support online marketing efforts by maintaining relationships with fans and social networking sites to increase artist exposure as outlined below. To understand this role, you need to be in the forefront of the latest technologies and trends in digital music and entertainment.

Online Promotion

Key Responsibilities Include:

1. Managing online promotions team by constructing fan-building initiatives including fan recruitment, media posting, video and radio requesting, online voting, viral “send to a friend” initiatives, banner campaigns, consumer surveys, contests, etc.
2. Work with marketing staff, labels and management to create engaging artist profiles, content, projects and web-based tools to increase artists’ awareness and fan base.
3. Interact with team members via email, forums and a weekly newsletter highlighting new content to artist pages, news and tour dates.
4. Implement promotions that increase website traffic and online members.
5. Create reports recapping projects and evaluating new technology and promotions; provide statistics and reporting on marketing initiatives.

Social Networking

Social Networking is key to growing and maintaining your fans. Social Media has become one of the most importance factors in exposing your Internet presence. Consumers today crave for content in every format, which is why the social networking team of the label is a valuable asset.

Key Responsibilities Include:

1. Assist in working with social networks to increase artist exposure by creating online promotions and contests.
2. Maintain various social networking sites for artists.
3. Update news sections on a daily basis to create reliable/accurate pages for priority artists, including tour dates and artist appearances, press clippings, personal messages from the artists to fans, etc.
4. Update design of websites by including artist podcasts, “webisodes,” widgets, videos, audio, artwork and press photos.
5. Interact with fans by sending updates; create viral contests to attract new and established fans.
6. Sites include Facebook, Reverbnation, YouTube artist channels, Twitter, Instagram, etc. and others.
7. Maintain branded social networking sites such as Twitter, Facebook, LinkedIn, Vine, etc.
8. Update news regarding labels and artists on a daily basis to create reliable/accurate pages.
9. Interact with fans by sending updates and creating viral contests to attract new and established fans.
10. Promote merchandise and blogs by directing fans on all social networking sites to appropriate sites.
11. Conduct ongoing research for new opportunities in the online space and identify emerging social networks and interactive platforms.

Creative Production

The creation and origination of all music marketing promotions in multiple commercial formats, both physical and digital, stems from the creative production department of the label. Since labels have access to more resources, the creative production team plays a critical and important role in exposing key marketing promotions for the artists and label. Pro-active involvement, forward-thinking efficiency and the ability to meet deadlines are all part of the culture in this department. Having an understanding of digital files and music technology is a requirement. This department works in conjunction with the marketing department when it comes to various projects and coordination of campaigns.

1. Scan press clippings for artists, labels and employees—convert them into JPEG, PDF, BMP using Adobe Photoshop.
2. Create audio and video streams for artists, labels and employees—convert them into WAV, MOV, MP3, WMA using Windows Media Encoder.
3. Create content tools to promote viral marketing that supports marketing promotions and priority artists, as well as assist in developing new and engaging tools that enable the maintenance and syndication of content including news, tours, etc.
4. Collating watermarked lists or coordinating digital promo mail-outs.
5. Maintain quality control/quality assurance of all posted information.

Manufacturing

Manufacturing includes pressing, packaging, shipping and warehousing, and press on demand for back-end support for online retail “seamless integration.”

Media Relations

Media relations involves pitching projects to various editors and web masters to generate editorial features (album reviews, news features, tour press, interview press, etc.).

1. Work closely with grassroots and project managers to construct an appropriate marketing plan.
2. Maintain existing relationships with blog sites, online “zines,” regional sites and tastemaker/community sites.
3. Perform general administrative work, website and contact research.
4. Track and archive current projects.
5. Compile mailings, media kits and press materials.

Publicity Department

The publicity department arranges for any feature stories, interviews, record reviews in local and national newspapers, magazines and web zones, as well as broadcast opportunities for such coverage on radio stations and television. They may also coordinate any of these publicity opportunities with an artist’s own publicist.

A key piece in the promotion of new product releases is the “creation of mass interest” in the marketplace. This is done in the motion picture industry with sneak previews, interviews with starring actors/actresses and directors, television commercials and print advertisements. The coordination of these activities is the responsibility of the publicist(s).

Publicists will arrange and promote appearances and interviews (talk shows, industry publications, mainstream magazines) and create written materials and ad copy about the artist to catch public attention. The label’s job is to utilize publicists to create buzz in the marketplace about new projects and artists. Initially, this important function will be outsourced to credible public relations firms until such time that it is feasible to internalize this position at a label.

Combined with concentrated airplay and print advertisements, the impact created from the publicist’s strategy creates the most powerful advertisement: word of mouth. Music buyers who hear the “talk” and hear the music on the radio are more inclined to enter a music store to make a purchase.

Corporate Sponsorship Department

Corporate sponsorship is a form of advertisement where companies pay to be associated with an event or cause. Finding the right sponsors helps make the event, and in turn your business, successful. Follow these steps to learn how to find corporate sponsors for your event:

1. Call local businesses, corporations (local, regional and national) using a pre-determined script and pitch a marketing sponsorship opportunity.
2. Maintain an organized list of those you call, with contact information and all relevant information for follow-up.
3. Submit by mail packets of information on services and sponsorship options.
4. Follow up on all interested prospective sponsors with persistence.
5. Look for co-branding opportunities.

Business Affairs Administration

The business affairs administration department of the label includes the accounting office manager, administrator, staff accountant, payroll and accounting.

Key Responsibilities Include:

1. Day-to-day office management and accounting.
2. Inspecting royalty statements and income.
3. Payments of royalties and mechanicals.
4. Registering works with societies.
5. Liaison with suppliers.
6. Manufacturing and production.
7. Basic legal affairs.
8. Labeling copy and logging masters.
9. Liaison with publishers such as ASCAP, BMI, SESAC and SoundExchange.

Artist Development

The artist development department can also be called artist career development. Though this department has primarily phased out with major labels, it has flourish among independent labels.

The artist development department usually oversees the career planning of artists signed to the label. This department coordinates a consistent marketing and promotional presence for an artist throughout their career with the record label. The artist development department has changed over the last decade. Many labels no longer have such a department. Others have changed the name to product development and concentrate more on “breaking” or promoting artists quickly in order to try to speed up the return on their financial investment. The pressure to return a profit to shareholders has changed the face of the music business dramatically in recent years, so the emphasis has been more on product development and securing a hit as quickly as possible.

Merchandising Department

The merchandising department administrates a label’s merchandising, marketing new and existing artists’ merchandising products with tie-in to all music events, shows, touring, website, etc. as support in boosting overall sales while creating a consistent revenue stream for the label and enhancing “artist and label brand equity.”

Creative Services

The creative services department supervises all product design jobs (CD, digital, vinyl cover art, etc.), trade and consumer press advertising, retail sales posters and flats, and other needs of the print media. The department also is responsible for merchandising concepts, graphic and website designs, artistic production, technological, internal and/or outsourced creative services.