MUC110 LEC4.Record Promotion and Distribution

Promotion and Distribution
of Recorded Music

© 2007 musicbizclasses.com

Record Promotion

Creating The Demand: The Team

Marketing
Radio Promotion
Artist Development
Artist Relations
Promotions
Product Management

Sales

Publicity

Advertising

Creating the Demand: Publicity
PUBLICITY: The Publicity Team (aka Media Relations):
is responsible for procuring free placements of stories,
pitches and announcements in the Media
Media.

Information is placed at:
p
•Radio
•Consumer and Trade Magazines
•Newspapers
N
•Internet
•TV (Cable, Network
TV

Information includes: announcements, reviews, feature
articles, i t i
ti l interviews, t lk show performance appearances
talk h f

Creating the Demand: Promotions

Promotions: The Promotions teams- Radio, Video,
New Media, General Promotions and Tour staff are
responsible for creating high impact programs for
diverse industry partners- radio stations, retailers,
websites,
websites TV productions

Tactics include:
–Independent Radio Promotion campaign
–Production and Promotion of Videos
Production
–Contests, Give-aways, In-Store Appearances
–Promotional ringtones and downloads
–Tour Support

Creating the Demand: Advertising

Advertising: The Advertising team is responsible
for purchasing ad space or making targeted media
buys.

Ads are placed in a variety of media including:
–Print- Consumer and Trades journals, magazines,
newspapers
–Broadcast- TV Cable (Independents), Radio
Broadcast TV, (Independents)
–In-Store Publications/Retailer Newsletters
–Internet


Creating the Demand: Sales

Sales: The Sales team is responsible for working
with distributors to inform retailers about new
releases

Sales uses these tools to help encourage Sell-In:
–Discounts
–Promo Copies
–100% inventory return policy
100%
–Retailer support $$


RECORD MARKETING TOOLS:
PRESS KIT

Offers a complete package about an artist and new release

Press Kit Elements:
• Artist/Band Biographies & Background
• CD/single
• Digital Artwork Logo, Screen Shots, Head Shots
• Testimonials: Industry Awards, Recognitions
• Press Release
• Press Clippings
• “Cut-by-Cut”-Track listing with artist’s p
y g personal comments

• EPK:
• Video Interviews
• Video of Performances

RECORD MAREKTING TOOLS:
PRESS RELEASE
Creates compelling, timely announcements about
artist/new release

Press Release Elements:
• A
Answers the I
th Important “W” questions-
t t ti
Who, What, When, Where, Why
• Headline
• Dateline
• Lead Paragraph
• Body Copy
• Company Boilerplate
• Contact Information

RECORD MAREKTING TOOLS:
ONE SHEET

Created b the R
C d by h Record L b l to provide
d Label id
a comprehensive snapshot of
information on a new release
release.

The One Sheet captures the most
important data of the upcoming release.
And helps “sell” retailers with an outline
p
of the marketing support available.


One Sheet Elements:
• Album Art and Logo
• Storyline/Buzz about Record/Artists
• Artist’s Bio
• Promotion and Marketing Plans
g
• Key Selling Points and Sales Tactics
• Street date
• Contact Info
• Track Listings
• Tour Plans
• B Code
Bar C d

Record Distribution

Distribution

What is Distribution?
• the commercial sales process of moving
goods from product manufacturers to
end-consumers
d

Goals
1)Sell maximum # of units (physical and
digital)
g )

2)Service retail accounts for repeat business


Distribution

Moving product from Manufacturer to Consumer

RECORD DISTRIBUTOR RETAILER
LABEL

Manufacturer Manages and Sells the product
makes the warehouses the to consumers
product product

INVENTORY MANAGEMENT AND CONTROL
IS THE FOUNDATION


Record Label Distribution Overview

• Labels Create/Package Records:
– Business objective: Create Marketing buzz and
Branding and get consumers interested in the music

• Distributors Move Records from Pressing to Stores:
g
– Business objective: Generate revenue from stocking
Music Product in Retail stores (Sell In)

• Retail Stock Records for Consumer Purchase:
– Business objective: Generate revenue from selling
direct to consumers (Sell Through)


Record Label Distribution Overview

•Distributors are the middlemen between
the labels and the retail outlets-
outlets

–they exist because they have developed more
y y p
efficiency in getting physical Records to record
stores

•Every established distributor, whether local,
regional or national has a circuit of retail
national,
outlets they service on a regular basis


Record Label Distributor Services
1. Order (buy) Records from Labels
2. Warehouse or store the records that are
waiting t b shipped
iti to be hi d
3. Track sales via invoicing and sales tracking
4. Help develop marketing campaigns.
4 H l d l k ti i
5. Employ a sales staff to pitch and inform retail
stores about their inventory
6. Deliver merchandise, set up displays and
make sure that inventory is stocked
y
7. Collect left over product that stores are
unable to sell- “returns”


Distributor Types
•Main Distributor Types:

– Major Label Distribution

– Independent Distribution

– Rack Jobbers

– One Stops
One-Stops

– Online- Digital and Physical
Online

Distributor Types

Major Label Distribution- Distributors
that are divisions or subsidiaries of Major
Labels.
Labels Usually manage their own label’s
label s
music via Branch Offices across the U.S.

Independent Distributors- Distributors
Distributors
usually sell smaller and independent
labels into stores– music chains and
mom-and-pop stores-
mom and pop stores generally focus on
a few genres--RED, ADA, IDC, RedEye,
Koch, Burnside, ThirtyTigers


Distributor Types

Rack Jobbers- Distributors that manage music sales
inside Large Retail Chains- have varying payment
agreements with retailers generally focus on Top 40 &
retailers-
Pop genres; often rent floor space from retailers-
Anderson Merchandisers, EDGE

One Stops- Distributors that services smaller retail stores
with access to larger distributors catalog- lower minimums-
SuperD, Caroline AEC/IDN
SuperD Caroline, AEC/IDN, Baker & Taylor

Online/Digital Distributors: Distributors that work
exclusively online/with digital formats Typically
formats. Typically,
independent–TuneCore, SongCast, The Orchard
Digital Retailers- iTunes, Amazon, ThinkIndie.com,
AmieStreet.com
Digital Platforms- Nimbit, Snocap, ioda

Other Distributor Types:
D-I-Y:
• Consignment
• Record Sales at gigs
• Record Sales and Downloads via artists’ own
websites

Miscellaneous:
• Record Clubs- Yourmusic.com
• Re-packagers- TV infomercials- Time-Life
• Cut Out Wholesalers- eBay
Cut-Out Wholesalers eBay,
MoonlightSales.com


Retail Music Environment
• 65% of all music sold is Physical Product- Primarily
Product
CDs
• Bricks-and-Mortar stores 85-90% of all Physical
y
Record sales are generated in retail stores
Store Types
•“Big Box”- Mass Merchandisers- Target, Wal-Mart, Best Buy
•Small to Mid Size Chain F Y E
Small Mid-Size Chain- F.Y.E.
•Independent/”Mom and Pop”- Amoeba, Twist &Shout
•Non-Music w/related lifestyle inventory space


Promotion vs. Publicity

Source: Record Label Marketing, Tom Hutchison


Media Examples



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MUC110 LEC4.Record Promotion and Distribution

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