Marketing Management - Case Studies
CASE: I Playing to a new beat: marketing in the music industry
Questions:
1. Discuss the micro and macro forces that are affecting the music industry.
Answer : Factors affecting the music industry include the following: • Consumers have created a new value curve for the music industry • Online file sharing and downloading where copyright holders are bypassed has put the traditional business model of the music industry in doubt • Competition for consumers time, attention and money is increasing • A vibrant world class music scene has enabled some Icelandic bands to benefit from online marketing (which may entirely take place among their fans) • Packing music CDs with extra features may not be enough to stem the decline of CD sales
New entrants, easy to use online music stores which offer flexible pricing structure and quality downloads that can be played on a variety of devices, are in an excellent position to exploit the turmoil and eventually redefine the way music is marketed, purchased and enjoyed. This is a threat to the established music retailers and labels.
2. Based on this analysis, what strategic options would you recommend for both music publishers and music retailers in the current marketing environment?
Answer: Strategic Options
i) Attract non-users
The majority of publicity and promotion the company undertakes utilizes word-of-mouth marketing and other free publicity such as free giveaways at public events. They may wish to take a more aggressive approach, with a new media campaign that is specifically aimed at attracting new users. Whilst it has been noted that the doughnut industry is generally in decline, They may wish to try and grow the category again, or at least stem the decline and gain greater market share of the smaller market.
ii) Increase Purchase Levels Amongst Existing Customers
This is harder to achieve since the company's current clientele have been observed to be
Questions:
1. Discuss the micro and macro forces that are affecting the music industry.
Answer : Factors affecting the music industry include the following: • Consumers have created a new value curve for the music industry • Online file sharing and downloading where copyright holders are bypassed has put the traditional business model of the music industry in doubt • Competition for consumers time, attention and money is increasing • A vibrant world class music scene has enabled some Icelandic bands to benefit from online marketing (which may entirely take place among their fans) • Packing music CDs with extra features may not be enough to stem the decline of CD sales
New entrants, easy to use online music stores which offer flexible pricing structure and quality downloads that can be played on a variety of devices, are in an excellent position to exploit the turmoil and eventually redefine the way music is marketed, purchased and enjoyed. This is a threat to the established music retailers and labels.
2. Based on this analysis, what strategic options would you recommend for both music publishers and music retailers in the current marketing environment?
Answer: Strategic Options
i) Attract non-users
The majority of publicity and promotion the company undertakes utilizes word-of-mouth marketing and other free publicity such as free giveaways at public events. They may wish to take a more aggressive approach, with a new media campaign that is specifically aimed at attracting new users. Whilst it has been noted that the doughnut industry is generally in decline, They may wish to try and grow the category again, or at least stem the decline and gain greater market share of the smaller market.
ii) Increase Purchase Levels Amongst Existing Customers
This is harder to achieve since the company's current clientele have been observed to be