Research markets, market segmentation and consumer behavior.
Position your brand for maximum competitive advantage.
Identify a target market.
Research direct and indirect competitors.
Apply concepts from your textbook and additional course material to analyze music business marketplace.
2. 1
Market Summary
The type of music business is identified as artist management without facilities. The
North American Industry Classification System (NAICS) code for "Agents and Managers for
Artists, Athletes, Entertainers, and Other Public Figures" is 711410. This classification
encompasses entities primarily engaged in representing and managing the professional interests
of artists, athletes, entertainers, and other public figures. These entities act as intermediaries
between their clients and potential employers or opportunities, negotiating contracts, and often
providing additional services such as public relations, marketing, and career strategy
development. Their primary activity involves leveraging industry networks to maximize their
clients' professional potential and financial earnings (U.S. Census Bureau).
In the context of the music industry, the selection process for an agent or manager is a
high-involvement decision for artists and entertainers. This process is characterized by extensive
information search and evaluation stages, as the choice of representative can significantly impact
an artist's career trajectory. Potential clients are likely to scrutinize the agent's or manager's
historical performance, including past client success stories, industry reputation, and the strength
of their professional network. They may also consider the personalized attention they will
receive, the agency's understanding of their artistic vision, and the financial terms of the
representation agreement. This careful, deliberative process underscores the importance of
cognitive factors in decision-making, with clients weighing various attributes and outcomes
before making their choices (Kotler & Keller, 2016).
3. 2
When artists and entertainers select an agent or manager, their decision is influenced by
both cognitive and emotional considerations. Cognitively, the decision is based on a rational
analysis of the agent's or manager's capabilities, including their success rate, industry
connections, and the services they offer. Emotionally, the decision may be influenced by the
perceived personal fit between the artist and the manager, trust, and the manager's enthusiasm for
the artist's work. Emotional factors can be particularly influential in the creative sectors, where
personal compatibility and mutual respect can significantly impact the artist-manager
relationship. The interplay between cognitive and emotional decision-making underscores the
complexity of the selection process in this industry sector (University Press 2023).
According to Maslow's Hierarchy of Needs, individuals are motivated by a range of
needs, from basic physiological necessities to the need for self-actualization. In the context of the
music industry, artists and entertainers seeking representation are primarily motivated by higher-
level needs such as esteem (e.g., recognition, respect) and self-actualization (e.g., realizing
personal potential, and creative fulfillment). Agents and managers who can effectively address
these needs—by enhancing their clients' public profiles, securing opportunities for creative
expression, and facilitating career advancement—are more likely to attract and retain clients.
This alignment with artists' intrinsic motivations is crucial for building successful, long-term
relationships (Maslow, 1943).
Market Trends
The digitalization of the music industry represents a significant positive trend for agents
and managers. Digital platforms offer unprecedented opportunities for talent discovery, audience
engagement, and revenue generation through streaming, social media, and online marketing.
4. 3
Agents and managers adept at navigating this digital landscape can provide immense value to
their clients by leveraging these platforms for promotion, distribution, and brand building (IFPI,
2020).
A challenge facing the industry is the increasing accessibility of DIY artist management
tools and platforms, which enable artists to manage their careers independently. This
democratization of career management resources can diminish the perceived value of traditional
agents and managers, especially among emerging artists sensitive to costs and keen on
maintaining control over their careers. The proliferation of these tools may pressure agents and
managers to adapt their service offerings and pricing structures to remain competitive.
Target Market
The target market for agents and managers specializing in the music business sector
comprises both emerging and established artists seeking professional representation.
Geographically, this includes individuals and groups primarily in major music industry hubs
such as Los Angeles, Nashville, and New York City. Demographically, the target market spans a
wide age range of 20-40 years, including both Millennials and Generation Z, who are actively
pursuing or have established careers in music. Psychographically, these individuals value
creativity, artistic integrity, and career advancement. Behaviorally, they are characterized by
their commitment to their craft and their desire for professional support in navigating the
complexities of the music industry.
5. 4
Customer Persona
James is a 21-year-old sales representative at a local electronic store. He has his degree in
liberal arts from a community college in New York. He is active on all social media platforms
and communicates through phone, face-to-face, email, text messaging, and social media. He gets
paid every week; at work, he is responsible for delivering excellent service to customers and
achieving the monthly goal for revenues. His biggest challenges are access to resources change
management, project management, and disorganization.
6. 5
Competition
Direct Competitor: One realistic direct competitor in the artist management service
industry is "Talent Management Group."
Indirect Competitor: One realistic indirect competitor in the artist management service
industry is "Digital Promotions Agency."
Competitors Strengths
Talent Management Group excels in providing comprehensive artist management
services. They boast a team of seasoned professionals with extensive experience in the
entertainment industry. Their strong reputation is built on successful artist promotions and career
development. The company's financial stability allows them to invest in cutting-edge technology
for efficient talent scouting and management. With a well-established brand and effective
business development strategies, Talent Management Group maintains a competitive edge
(McKinsey & Company, 2023).
Digital Promotions Agency stands out with its innovative approach to artist exposure
through digital platforms (Rayakwar, 2024). Their expertise lies in utilizing technology for
online visibility, making them an attractive alternative for artists seeking a primarily digital
presence. While not directly providing artist management services, their digital promotion
capabilities present an alternative for artists looking to enhance their online presence.
7. 6
Competitors Weaknesses
Despite their strengths, Talent Management Group faces challenges in adapting to rapidly
changing technology trends. Their traditional approach to artist promotions may hinder their
effectiveness in the digital age. Additionally, their heavy reliance on established artists might
pose a vulnerability, especially if those artists face downturns in their careers (Ptgadmin.2023).
Digital Promotions Agency, while excelling in digital exposure, lacks the comprehensive
artist management services offered by direct competitors. Their focus on online presence might
overlook essential aspects of traditional artist management, such as contract negotiations and live
event planning. This limitation can be a weakness for artists seeking a more holistic management
approach (Cezim,2023).
Positioning
To cater to emerging NY-based artists seeking a blend of traditional and digital artist
management services, our brand, "Make Music Better Management," is positioned as a versatile
and tech-savvy artist management agency providing personalized career development and
promotions through both traditional channels and innovative digital platforms, offering a unique
competitive advantage in the dynamic entertainment landscape.
8. 7
References:
Cezim, B. (2023, December 21). SWOT analysis for a digital marketing agency with examples.
Digital Agency Network. https://digitalagencynetwork.com/swot-analysis-for-a-digital-
marketing-agency-with-examples/
Global Music Report. (n.d.-b). https://www.ifpi.org/wp-
content/uploads/2020/03/GMR2021_STATE_OF_THE_INDUSTRY.pdf
How to start a digital marketing agency | upwork. (n.d.-c).
https://www.upwork.com/resources/start-a-digital-marketing-agency
KOTLER , P., & KELLER, K. L. (n.d.). (PDF) Marketing Management.
https://www.researchgate.net/publication/225084026_Marketing_Management
McKinsey & Company. (2023, May 22). What is talent management?. McKinsey & Company.
https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-talent-
management
North American Industry Classification System - NAICS. United States Census Bureau. (n.d.).
https://www.census.gov/naics/
Ptgadmin. (2023, October 19). The 5 biggest talent management challenges facing companies
today. Peopletree Group. https://peopletreegroup.com/blog/the-5-biggest-talent-
management-challenges-facing-companies-
today/#:~:text=A%20major%20challenge%20in%20talent,to%20develop%20them%2C%2
0and%20when.
Rayakwar, G. (2024, February 1). How digital marketing can benefit artists. IIM SKILLS.
https://iimskills.com/digital-marketing-for-artists/
What is the role of emotions in creativity? - fifteen eighty four: Cambridge University Press.
Fifteen Eighty Four | Cambridge University Press - The Official Blog of Cambridge
9. 8
University Press. (2023, March 10). https://www.cambridgeblog.org/2023/03/what-is-the-
role-of-emotions-in-
creativity/#:~:text=There%20is%20reliable%20evidence%20that,strengthened%20by%20n
egative%20activating%20moods.
