Where do they do their business?• The products of record labels are the artists and the music the artists produce. As record labels are responsible for the recording of music and the manufacture of the albums they will release audio recordings on various formats such as vinyl to be sold on the high street or ordered online, they will also sell the audio recordings on their own online through sites such as ITunes. Record Labels also produce music videos to go with the artists songs as this broadens the artist’s audience as another medium to market their music, television.
What does the industry area do?• Record labels are responsible for the production, manufacture, distribution, marketing, promotion, enforcement of copyright protection of sound recordings and music videos, conducts talent scouting and development of new artists ("artists and repertoire" or A&R); and maintains contracts with recording artists and their managers. Artists are becoming reliant on Record Labels to assist them in the marketing of their products. The Record Labels will do this for example by having publicists generate media interest through press releases. However Record Labels may not always make decisions that the artists are happy with. For example the Record Label may censor content, change the titles of songs or artwork or edit songs. They do this as they believe the product will sell better if the changes are made.
What factors of Pricing does a label have to consider?• The record label will have to consider the pricing of many things including: manufacturing, promotional materials (for example, merchandise) and they have to consider how they will afford to pay for all of the promotion in the first place. Many labels borrow a loan to invest in an artist from just a few hundred thousand pounds, to millions, chancing on the basis that they will get the money back through ticket and cd sales when the artist(s) is launched. Some labels hold gigs and tours advertised on twitter/MySpace/bebo to draw in an audience and some financial backing before they really start to invest in the artists.
What is their target market and who are their clients?• Although a record company promotes the artists, records the artists and organizes the artist’s life, it is easy to forget that they are working for the artist instead of vice-versa. The artists are their clients. Target markets focus on marketing and sales efforts towards the companies and people that are most likely to buy their products and services. Labels will often target two primary market segments: record stores and consumers/ fans at live shows. These will often be the main sources of income so they will be the main targets. Normally, their focus will be to develop some sort of visibility within the community, enough to be able to sign up bands and singers, which are the key to revenue generation. The constant need to sign up bands will drive the marketing activities that record companies will undertake in order to generate revenue in the future
What is/are the products?• The products of record labels are the artists and the music the artists produce. As record labels are responsible for the recording of music and the manufacture of the albums they will release audio recordings on various formats such as vinyl to be sold on the high street or ordered online, they will also sell the audio recordings on their own online through sites such as ITunes. Record Labels also produce music videos to go with the artists songs as this broadens the artist’s audience as another medium to market their music, television.
So What Market Research do Labels Need To Do For Their Products?• They need to find out if they have access to enough talented artists to make their label a success however It is likely that the employees already have a good knowledge of the local music scene. They often use:• social networking websites such as MySpace, which unsigned bands use• local promoters• recording studios and local gig venues• And music journalists from the local newspaper for promotion.• Additionally It is also important that they find out whether there will be demand for the music that their artists produce, particularly if they aim to specialise in a particular genre of music. They also do other research such as could talking to record shop owners to find out what people are buying as well as club DJs and promoters. Also, the ‘top 40’ chart list will help them asses what kind of music people are listening to as a majority.• They will also have a database telling them their gross income and they will have to research which of their artists are making the most money and why. They have to re-think how they can promote other artists.
What and how do they promote their product/service?• To promote itself a record label makes sure that the artist or band it is signed to is played on the radio and advertised really well. The way they do this is by getting the artists music videos play on stations like MTV, VH1 or VIVA and getting their songs played on major radio station like Capital FM which plays some of the best- selling mainstream hits. Also through the use of advertising on billboards, buses… Record companies use these methods so more people know about their material and there are greater profits made. What many record labels fail to do is use the Internet to promote themselves. The Internet is one of the fastest growing way of obtaining music and also one of the cheapest ways to advertise. If Major record companies embraced the use of the Internet for promotion, millions more people could see their products and services at a lesser cost than traditional methods. When promoting an artist or band a record company has to make sure all its departments are communicating about the best way to sell the artist and that all its departments are running smoothly. If a department isn’t running smoothly or efficiently e.g. the advertising department then the maximum amount of publicity and profits won’t be made as the client or artist hasn’t been promoted well enough.