2. Record Label Promotion and Distribution Chapter Fourteen
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

3. Start Thinking . . .
How is a new album release marketed to the general public?
What are the various avenues for distribution of recorded music?
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

4. Chapter Goals
Learn the importance of creating a marketing plan for merchandising a new record release.
Gain understanding of record promotion techniques.
Become knowledgeable about record distribution.
Examine the role of NARM—how it serves its members and the music industry.
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

5. The Marketing Plan SWOT The concept The marketing team strengths
weaknesses
opportunities
threats
The concept
focus on the target market
come up with a hook
The marketing team
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

6. The Elements of a Marketing Plan The Strategy
Convince a target audience to buy
Can contain
promotions
publicity
paid advertising
Once strategy is decided, cover art, promotional material, copy, and graphic elements are created
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

7. The Elements of a Marketing Plan Radio Promotion
Restricted airplay
In-house and independent promoters
Reporting stations
Promotion to program directors
Mailings, telephone follow-ups
Payola
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

8. The Elements of a Marketing Plan Beyond Terrestrial Radio
Satellite radio
Digital music channels
Internet radio
Dance clubs
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

9. The Elements of a Marketing Plan Publicity
Publicity campaign creates a buzz to get news about a record release published
Interviews
Satellite tours
Traditional media
Dailies and weeklies
Fanzines
Internet sites
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

10. The Elements of a Marketing Plan Advertising
Paid advertising yields controlled impressions
Label advertising
Cooperative advertising
Trade advertising
pull-through
push-through
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

11. The Elements of a Marketing Plan Digital Marketing
Multi-prong approach
promotion + publicity + advertising
press release to websites
place content in digital media
buy digital media ads
Marketing integration
Interactive digital media
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

12. The Elements of a Marketing Plan Digital Marketing
Selecting Digital Marketing Opportunities
lists assembled by label
Video websites
lists assembled by the artist
Online music stores
Label websites
Social websites
Artist websites
Search engine marketing
Third-party websites
Cellular phones
Blogs
Virtual worlds
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

13. The Elements of a Marketing Plan International Promotion
Labels may spend more money and effort promoting abroad
patchwork of territories
require individualized and costly attention
Timing of foreign releases
Foreign promotions through staffed affiliates
Strongest foreign markets:
Netherlands, UK, Germany, Japan, Australia, France
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

14. Record Distribution Digital Distribution
Online music is a key channel for legitimate distribution
Non-physical formats made up one third of U.S. recorded music revenue by 2011
Larger “slice of pie” than physical product
Unbundled music purchases a drawback for labels
Traditional brick-and-mortar retailers now offering online services to complement storefronts
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

15. Record Distribution Physical Distribution
Manufacturing, shipping, and managing inventory are still expensive for labels
manufacturing on-demand
Distribution and wholesaling challenging
money tied up in inventory
slim profit margins
thousands of SKUs
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

16. Record Distribution Types of Distributors
Majors
Independents
One-stops
Rack jobbers
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

17. Record Distribution [Insert Figure 14.1]
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

18. Record Distribution Retail Merchandising
From the distributor or label warehouse, the physical goods arrive at retailers
Retail competition is bruising
Market share versus profit margins
Categories of retailers shifted over the years
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

19. Record Distribution Mass Merchant Chain Stores
Mass merchants gained enough clout to
dictate prices
demand changes to the music itself
Major labels sell direct to mass merchants
Exclusive CD retailing deals by artists
Coffee chain tie-ups
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

20. Record Distribution Entertainment Retailers
Record retail brands disappearing
Replaced by entertainment software chains
DVD, game, and music product
To survive, traditional record-only stores must
be well managed and situated where retail rents are cheap
stock music of the community
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

21. Record Distribution Cutouts and Repackaging
deeply discounted music
excess CDs and oldies with low or no royalties
“Rereleases” and “new” releases
big name hits
genre compilations
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

22. Record Distribution Retail Terms and Inducements
Generous returns policies
all accounts must be given the same discounts
Eye-catching placement
impulse purchasing
price and positioning
end caps
POP displays
“clean” CDs
MAP policies
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

23. Record Distribution National Association of Recording Merchandisers
NARM represents recorded music distribution industry
Key activities
lobbying local, state, and federal authorities on legislative matters
providing myriad information resources to members
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners

24. For Further Thought . . . What is SWOT?
What are the benefits and disadvantages of selling physical CDs versus downloads or streams? Which party is helped or hurt most: artists, labels, distributors, retailers, or consumers?
Music Business Handbook and Career Guide, 10th Ed.
© 2013 Sherwood Publishing Partners