Module 1 ppt mmi 543 introduction to marketing

• 1. Introduction to Marketing

2. MMI 543 Module 1 Topics Introduction to marketing Defining marketing and how it applies to music and creative offerings Marketing is a process, requiring time, planning and collaboration Introduction to the marketing plan 3. MMI 543 Module 1 Learning Objectives Identify examples of how marketing recognizes the needs of the consumer and seeks to fulfill those needs Locate examples of how music artist, venues or events communicate with the target market. Compare marketing initiatives for music with those of consumer products and identify differences and similarities. 4. Music Marketing Terms Used throughout this course Brand Image SLRP Audience Fan Consumer Demo Lifestyle Price & position Scaling Genre Q score Spins Ratings Arbitron Cash Cow Payola Marketing mix Positioning Time line Research Sound scan BDS M.A.P. ADI Impressions Panel Scheduling Release date Campaign Cume 35 + 18-24 Stiff 5. Music Marketing Terms Used throughout this course Hit Out of the box First week Scanned Shipped Returns Add Spins Overnights Paper add Airplay Video Syndicated Accounts Mediabase Product P1 P2 P3 Configuration Non-Com 6. What is marketing? Marketing seeks to discover the needs and wants of prospective customers and to satisfy them. American Marketing Association A technique for creating exchanges and influencing behavior. Scroll over the speaker and click for narration 7. Marketing Music and Related Events Concert Festival Symphony Series Fair Tour CD release Club Date Artist launch Showcase Store Opening Award show campaign 8. Marketing Activity Set of institutions and Processes for Creating Communicating Delivering and Exchanging ..offerings that have value for customers, clients, partners, and society at large. 9. What are offerings? Products Services Experiences 10. Creating, Communicating, Delivering 11. Creating, Communicating, Delivering How does a venue deliver value? 12. Marketing Is marketing music/entertainment/art any different than marketing consumer products? Yes?.................explain how/why. No?..................why not? 13. Creating, Communicating, Delivering How does creating art differ from creating cookies? How does communication differ in the entertainment world than in other consumer products? How is music delivered differently from other consumer products? 14. Every Organization Markets Products Services Ideas 15. Product Marketing The 4 Ps Product Price Place Promotion 16. What is the product? The events or could it be something else? 17. Price What does it cost? Are there discounts? How is it priced relative to others? Is it free? Does the price equate value? 18. Place Where is the product being sold? What is the proper venue? What is the correct radio station for the music? Should this music be in movies or on TV? 19. Product Marketing The 4 Ps Promotion Press? Email blasts? Tweets? Contests? Posters? 20. Marketing Music Market Art? Or Create a Product? 21. Creating a concept Identify a need & fill it Maurice Starr-discovered New Edition Created-New Kids on the Block Youve Got it (the right stuff) http://www.youtube.com/watch?v=tbIEwIwYz-c&feature=related Lou Perlman-Backstreet Boys Bob Curiano-writer & producer I Want it that Way http://www.youtube.com/watch?v=4fndeDfaWCg N SYNC Bye, Bye, Bye No Strings Attached 1.1 million first day sales 2.4 million first week sales 22. Marketing Is A Process 1. Situation analysis (S.W.O.T.)Research 2. Market/Product Focus-goal setting 3. Create marketing program 4. Implementation Phase (work the plan) 5. Evaluation Phase (what worked/didnt?) 6. Repeat. 23. Market Research Information about your audience(customer) makes for a more successful program (business) 24. Types of research Observation Transactional surveys Focus Group Research Customer panels Personal interviews Survey questionnaires Marketing experiments 25. Research Process What is the first step? Define the problem & set objectives Develop the plan Collect and analyze the data Create report/distribute findings & recommendations Implement recommendations & evaluate 26. How Does This Work With Artists? 27. Do consumers always know what they want or need? 28. Maybe not 29. The Marketing Mix Product Price Place Promotion You Control These Factors 30. Everyone must work within constraints. What are they? 31. What is your situation? SWOT Strengths Weaknesses Opportunities Threats 32. Make a list of each. Strengths Weaknesses Opportunities Threats 33. Situation Analysis SWOT Build on a strength Correct a weakness Exploit an opportunity Avoid a threat 34. Now build upon your list, actionable steps for each. Build on a strength Correct a weakness Exploit an opportunity Avoid a threat 35. Market/Product Focus Set Goals Segment market (common needs) Find points of difference Position the product 36. Marketing Program/Mix Product: features, name, packaging, warranty Price: list price, discounts, payment methods Promotion: advertising, PR, digital marketing Place: outlets, channels, stock levels 37. Implementing your marketing plan Get to work Make calls Get on-line On site visits Follow-up Place ads Produce events 38. Evaluate How are we doing? Results Sales Calls Traffic What metrics are being used to determine results? 39. Evaluate How are we doing? Results Sales Calls Traffic Based on your determined metrics, make changes if necessary! Do you keep doing the same thing, or change your plan? 40. Repeat Constant cycle Planning Implementation Evaluation Adjust & Repeat cycle 41. External factors You Do Not Control Social Economic Technological Environmental Competitive Regulatory 42. Environmental Issues to consider Social Expanded use of social networks Mobility of your audience Concern for global warming Disintermediation Economic Global economy China is 2nd largest economy Baby boomers retiring 43. Environmental Issues to consider Technological Everyone has a cell phone (841 million in China) Demand for renewable power sources Cloud based computing Competitive Consumers are making content (music,videos,blogs) New metrics for assessment (traffic, hits) 44. Environmental Issues to consider Regulatory Bandwidth limitations Privacy concerns Copyright laws Codes City ordnances 45. What issues derailed this marketing plan? 46. Will this technology change music marketing? 47. What external factors impacted music retail? 48. When developing your marketing campaign, try to discover What motivates the consumer? 49. What motivates these purchases? Childs car seat Justin Biebers new song is released on iTunes Taylor Swift concert ticket Cleveland Symphony Orchestra performance Is it a good price? Maybe not. What is the consumer seeking? 50. What is most important to consumers? Money? Fame? Friends? New car? Cool laptop? Love? Nice clothes? 51. Marketing First Objective? Discover the needs of the consumer. Define the target market 52. Elements of the Marketing Plan Scroll over speaker ad click for narration 53. Executive Summary The Executive Summary sells the marketing plan to readers through its clarity and brevity. The summary should present a description of the project, its target market, and its potential within the market. The summary should also provide an overview of the main points of the plan and should emphasize an action orientation. 54. Strategic Focus and Plan The Strategic Focus and Plan sets the strategic direction for the entire organization for this project. 55. Mission/Vision The Mission/Vision statement is a qualitative statement that specifies the markets and product lines in which this project will compete. A mission statement can dramatically affect the range of a firms marketing activities by narrowing or broadening the competitive playing field. An effective mission statement must be clear and direct. 56. Goals The Goals section of a marketing plan sets both financial and non-financial targets. Goals should be in quantitative terms, where possible, to facilitate measuring the performance. 57. Goals Non-financial goal: Bodacious Bob will receive a Grammy nomination for Best Rap Album for this project. An example of a financial/quantifiable goal (note it is specific and measurable): The Bodacious Bob release will generate sales exceeding 25,000 units 58. Core Competency Competencies are an artist/organizations special capabilities, including skills, technologies, and resources, which distinguish it from other organizations and provide value to its customers. A competitive advantage is a unique strength relative to competitors, often based on quality, time, cost, or innovation 59. An example of a competitive advantage: Bodacious Bob has a sizable fan base abroad, and a successful international release and tour will monetize this fan base. 60. Situation Analysis The essence of the situation analysis is taking stock of where the artist has been recently, where it is now, and where it is headed. SWOT Industry Analysis Competitor Company Customer 61. Market-Product Focus Set objectives and target markets Why is target market appropriate Objectives and goals should be measureable terms What are the points of difference? Positioning defines the points of difference 62. Marketing Program Marketing Mix Four Ps Product: special features, packaging Price: discounts, payment methods Place: outlets, venues, formats Promotion: public relations, bio, advertising 63. Marketing Program Financial data and projections All the marketing mix decisions covered in the marketing program have both revenue and expense effects. Both past and projected financial data are included. (A key indicator of what future sales will be is to examine past sales, or a competitive product sales history for comparison purposes.) 64. Implementation Plan How you will turn plans into results. These marketing tactics are detailed operational decisions essential to the overall success of marketing strategies. Unlike marketing strategies, marketing tactics involve actions that must be taken immediately. 65. Implementation Plan For each strategy describe what has to be performed to carry it out. For example, if the plan calls for adding television advertising, implementation might involve contacting an ad agency and arranging a meeting, agreeing on objectives, targeting audiences, and scheduling a flight of advertisements. 66. Implementation Plan If the plan calls for increasing the price, a breakeven schedule of alternative prices might be performed 67. Evaluation The purpose of the evaluation phase is to keep the marketing program moving in the direction set for it. The marketing manager compares the results of the marketing program with the goals in the written plans to identify deviations. The marketing manager then acts on the deviations to correct the negative and exploit the positive ones.