Growing Music Industry - Essay Example

Music Cultures & Marketing Principles Introduction The music industry is growing at a constant rate as it is increasingly becoming an essential part of the entertainment industry. Music is an essential component of every culture and heritage and is reflected in regional, national and international entertainment related activities. Competition in the industry has increased tremendously, with entry of multiple artists and different genres as well as digitisation of music (Vaccaro and Cohn, 2004). According to Molteni and Ordanini (2003), the dimension of music industry has altered drastically with increased access to internet. Presently, digital media is a mass source in context of production, consumption and distribution of music. The growing competition in the entertainment industry has resulted in a greater demand for strong marketing strategy so that the industry is protected from piracy and distribution is not hampered in the process. The music industry can be classified in two sectors: music recording and musical events (Vaccaro and Cohn, 2004). The paper focuses on discussing various components of marketing mix that has positive impact on the industry as a whole. Recording industry Music industry is primarily defined by the creation and selling of music by an individual or by certain company. The recording industry is one of the primary sources of income in the music and entertainment industry. There are a number of individuals who operate within the music industry namely, music composer, lyricists, instrumentalists, music publishers, producers, sound engineers and legal managers. The functions in the recording industry do not end with just creation of music; it is rather the first step which is followed by several other steps such as giving the music shape of commodity in the form of CDs, DVDs and soft copies, marketing and promoting the recorded sound and selling the same at a pre-decided price (Hull, Hutchison and Strasser, 2011). Rapid evolution of interactive marketing methods and online distribution channels, following ongoing marketing trends may not prove sufficient for recording companies. The companies need to focus developing marketing strategy for the future while considering current trends as the base. Two important measures that these companies require adopting include legalisation of the music they produce so as to gain control and undertake measure to compete with piracy as going by the trend, it is almost impossible for even legal institutions to stop piracy. In the following section, each element of marketing mix has been discussed elaborately that record companies and distributers must emulate (Hull, Hutchison and Strasser, 2011; Lopes, 1992; Lam and Tan, 2001). Product For marketing music as a commodity, it is important to analyse various ongoing trends in the music industry. According to many authors, along with retail industry, the music industry is also being affected by the long tail effect. The effect was observed to be so strong that definition of various terminologies related to music is changing with it. Moreover, digitisation of music through internet and broadcast media such as television and radio, has had a strong impact on physical form of music such as CDs and DVDs. The demand witnessed tremendous decline and so is the profit of the recording companies. However, consumers still prefer to buy CDs so that they can keep a record of their taste as well as due to the packaging, lyrics and artwork (Booms and Bitner, 1981). Price Until recently, consumers exhibited less interest towards purchasing music as a commodity and many considered it as a luxury. Consumers generally preferred listening music on radio and television where a particular song go aired multiple times a day. With advent of internet, radio stations are also modifying their programs and consequently music is phasing out rapidly as new soundtracks are streaming in. This scenario has influenced music lovers to maintain a record of the music they prefer to listen and buy CDs In addition, a number of music companies are selling music online as well. Considering the growing competition, it is important for companies to ensure that the price should be competitive as well as generate the necessary profit (Booms and Bitner, 1981; Lopes, 1992; Lam and Tan, 2001). Promotion Distribution of music has shown significant shift towards internet or online broadcasting. Therefore, it is important for music companies to synchronise their promotional strategies with online tools. Additionally, the companies can exploit various internet based interactive marketing tools to promote their products. Music is not only being distributed through internet but also can be produced; this has resulted in consumer empowerment. Presently, consumers can interact with music through a number of innovative ways. It was proposed by a number of marketers that online marketing strategies such as viral marketing can be utilised for developing brand image as well for creating sales opportunities. Companies should utilise the web for consumer engagement such as presenting opportunities to consumers to record their own tract or create mixes and upload (Lauterborn, 1990; Lam and Tan, 2001). Place Besides, CDs and DVDs, the internet has become the prime source of listening and buying music. Even as consumers buy CDs and DVDs, they generally listen to music at various online streaming sites. As the demand for physical sources of music is comparatively low, recording companies should primarily focus on distribution of the soundtracks through internet based channels given the growing interest of consumers in internet based activities. A number of sites and software can be seen in the internet where consumers can select the genres, artists and albums as well as compile their choices as favourite and save them. Online music stores such as iTunes and others also sell music and if recording companies partner with such online music stores, they can be benefited by the same to a great extent (Lauterborn, 1990; Lam and Tan, 2001). Musical events and live performances In the entertainment industry, a recent trend is gaining increasing attention as consumers are exhibiting their growing interest in live musical acts. Market studies suggest that live concerts and musical events attracts great number of consumers. The most possible reasons can be the artist, the ambience and the overall experience. For instance, a rock music concert is often attended a number of people who generally do not enjoy rock music. The prime reason is to experience the live music and the surrounding. Presently, such concerts and live shows are being organised by numerous artists all over the world. From an artist’s perspective, it is increasingly becoming one of the innovative promotional ways and method of launching new soundtracks. The elements of marketing mix can be observed in live shows as well (Lopes, 1992; Weber, 2009). Product The concept of music band has been in existence for a long period of time but with changing trends in the music industry, music bands are gaining greater share of popularity through live music shows. In these shows, the core product is augmented within a number of other products. For instance, if music is core product, it is being augmented by ambience, experience and foods that are served at the concert. Due to this reason, artists prefer performing as a part of bands so as to enhance the impact (Borden, 1965). Price The live concerts are a kind of experience that are being sold as well as bought at regional, national as well as international level. It was observed that consumers are ready to pay the amount that event organisers are charging provided they get the kind of experience they are looking for. The primary reason behind consumer’s motive to pay is to enjoy live music face to face with the artist of their choice. Generally, such concerts are expensive and consumers pay for it because they consider it as a lifetime opportunity (Carú and Cova, 2005). Promotion Events such as concerts and live shows, itself act as promotional tools. However, event management organisations generally promote such events through various online as well as offline media. International concerts are promoted for months through social media, blogs and streaming videos in YouTube. On the other hand, regional and national concerts are promoted through television, radio and print media such as newspaper and magazines (Booms and Bitner, 1981). Place Most of the event organisers are presently selecting internet as the point of distribution of concert passes. Interested individuals are generally intimated through social networking sites such as Face Book and Twitter about the site or physical location from where they can purchase the passes. A number of event organisations also sell passes through regional and local music stores and recording companies (Lam and Tan, 2001). Conclusion Marketing is important as well as reflected in activities of different sectors ranging from retail to music. From culture to commercialisation, the music industry is evolving rapidly and so are its mode of production and distribution. In this paper, role of elements of marketing in the music industry has been discussed in a detailed manner. The music industry on the basis of its activities and earnings can be classified in recording and live music segment. During the study, it was observed that the role of each elements of marketing mix differ in these two sectors, however, both these sectors are equally affected by digitisation of music. In the present scenario, the music industry should take advantage of the internet to grow in terms of production and distribution. Reference list Booms, B. H. and Bitner, M. J., 1981. Marketing strategies and organization structures for service firms. Marketing of services, pp. 47-51. Borden, N. H., 1965. Science in marketing. New York: John Wiley & Sons. Carú, A. and Cova, B., 2005. The impact of service elements on the artistic experience: the case of classical music concerts. International Journal of Arts Management, 39-54. Hull, G., Hutchison, T. and Strasser, R., 2011. The music business and recording industry. London: Routledge. Lam, C. K. and Tan, B. C., 2001. The internet is changing the music industry. Communications of the ACM, 44(8), pp. 62-68. Lauterborn, B., 1990. New Marketing Litany: Four Ps Passé: C-Words Take Over. Advertising Age, 61(41), pp. 1-26. Lopes, P. D., 1992. Innovation and diversity in the popular music industry, 1969 to 1990. American Sociological Review, pp. 56-71. Molteni, L. and Ordanini, A., 2003. Consumption patterns, digital technology and music downloading. Long Range Planning, 36(4), pp. 389-406. Vaccaro, V. L. and Cohn, D. Y., 2004. The evolution of business models and marketing strategies in the music industry. International Journal on Media Management, 6(1-2), pp. 46-58. Weber, W., 2009. The Great Transformation of Musical Taste. Cambridge: Cambridge University Press. Read More