Music labels rely heavily on marketing to promote new artists, new music, upcoming tours, and anything else that may be coming down the pipeline. The marketing department works diligently to stay on top of the game. Due to this the company as a whole has to stay abreast of the latest trends and figure out how they fit into the market while maintaining a competitive advantage. They can do this by understanding what are the components of their digital marketing environment and understanding how to analyze the need for potential marketing services.
The music industry is composed of both the offline and online world, it is important to consider this when putting together a digital marketing strategy. The marketing environment has actors and forces that affect the ability to create a successful relationship with the customer. The marketing environment is composed of two environments. To be specific, it is composed of two major elements a microenvironment and a macro – environment. Allow me to elaborate below:
Micro & Macro Environment Components:
The Micro- Environment – is known as the internal operating environment which consists of the smaller forces that affect how the customer’s needs are met
- This environment focuses on the customers, competitors, intermediaries, suppliers & the general public
- The job of the marketer is to understand the behaviors of the customers, competitors, intermediaries, suppliers, and the general public; to create a digital strategy that works
The Macro – Environment – Has a broad range of external larger societal forces that mainly operate outside of the organization
- This environment includes economic, political, demographical, socio-cultural, technological, and legal elements that affect the microenvironment
- This can include the way people spend their money, employment rates, inflation, cost of living, and other elements that impact the environment
The music industry does not fall short of these environments as they are a business at the end of the day and need to understand their environment.
The Music industry needs to analyze both the Micro and Macro environment influences constantly to be able to create a marketing strategy that works. Here are some tactics that a music marketer can use to analyze their environments:
- Environmental Scanning – Constantly analyzing and monitoring events to see how what impact they have on the environment. For example, In the music industry, there is a magazine specifically dedicated to informing the industry of who are the top-performing songs on the charts. This is a great magazine that the music executives subscribe to keep abreast of the latest music and trends.
- Click Ecosystem – This system shows the customer behaviors on how they navigate online between search engines, media platforms, and the overall flow of customer engagement. For example, this gives the music marketer the ability to track likes on Instagram, of their artist’s new content piece.
- Online Market Ecosystem – This is a system of different online systems interacting with one another via a specific software or hardware technology. For example, A great way to see how the artist new single is doing; is to analyze the CTR of the artist’s new video being advertised, on a paid YouTube ad. This information is used by marketing to see if their ads are generating click-throughs.
- API’s Application Programming interface – An application that allows digital interaction by sending and receiving messages to the user. Here is one example, the royalties department uses a tracking system to input information of how many streams/downloads an artist made off on a song and this in turn generates a report of what the payout the artist should be. This information will be analyzed by finance to see if it is worth investing in another single.
To sum up, the music labels rely heavily on marketing to promote new artists, new music & upcoming tours, to say the least, but for them to remain competitive in their market; their marketing strategies need to be on point. As long as the marketer understands their micro and macro environments and implements these analytical tactics, they should be able to provide the label with the sound information needed. This should provide the label with the ability to become the best in the industry. Word to the wise “understand your market!!”