Four Functions
1. Product ::
2. Pricing ::
3. Promotion ::
4. Place(Distribution)::
Marketing Concept
The creation and delivery of a product that will satisfy consumer needs, at a price that will allow a profit to be made for the organization.
Label marketing structure
Sales, promotion, and publicity functions.
Label options for distribution
Handled separately. Either through a major distribution system, or an independent distributor.
Product Consideration
1. Style and Quality of the artist being recorded. ::
2. Packaging of the final product

* Both of these must be keyed to demand and taste, but need to fit with other of the label’s products.

Mainstream Market
4 Genres.
1. Rock
2. Urban/ Rap
3. Country
4. Pop/easy listening

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70% of market

Catalog Product
1. Value does not end once it drops of the charts.::
2. The recordings remain available to retailers through the labels catalog of products.
Product Sales defined
Taking place within 15 months of release
Catalog Product Sales
Sales after 15 months of release
Greatest hits package
Continued success. Popular with consumers who recently got into an artist with an extensive catalog
Boxed Set
Elaborate form of greatest hits. Usually reserved for long careers or historically significant artists.
Primarily a promotional tool. What most radio stations actually play, although many play cuts from the album. :: 2. Used to be an item to sell. Declined since 1973
Downloadable singles
1. Whether or not they’re a success remains to be seen. .99 ::
2. 2003 Billboard soundscan data for download singles
Manufacturer’s suggested retail price
Three Prices Levels
1. Front Line – New release. Highest. ::
2. Mid line – New artist, catalog product. ::
3. Budget Line – Deep catalog or fading artists. Less than 2/3 of price of front line ::
Driving force behind promotion
Belief that consumer WONT buy album until they’ve heard a cut.
Primary exposure
Radio/TV, Record Store, Live performance, Internet streaming, anywhere the consumer hears the music.
Secondary Exposure
Ads, record reviews. Promote awareness of the existence instead of the content
Radio Promotion
Still main form of promotion for albums in the mainstream
Record Promotion Person
person who’s job is to get radio airplay for records released by a label
Independent Label
Not owned by major and has its records manufactured and shipped to various independent dist. around the country.
Major Label
Owned by one of the 4 conglomerates and has its own dist.
Independent Distributor
buys records from indies. and sells them to retail stores and to one stops that handle all lines
Branch Distributor
Sells only the labels manufactured by its corporate owner or other labels the parent company agreed with.
Sells all labels. Purchases from branch and indie dist. Sells to individual stores whether they are mom and pop or individual locations of retail chains.
Mom and Pop Stores
Single stores or very small chains. By from one stops.
Retail Chain
Group of stores with a common owner. Most buy from one-stops that are owned by the same parent company as the chain.
Universal Product Code (UPC)
Identifies sales of items. Contains a bar code read by laser or other light and then data is recorded about artist, album, sales per month, day, week.. etc..
Soundscan in the beginning
In 1989, Mike Shalett began it. They worked out with retailers to get Point of sale data and compile it and make nationally available reports.
Broadcast Data Systems
Billboard’s BPI Communications affiliate to monitor airplay by computer. It used to be by honesty of program directors.