Tag Archives: music

Marketing Used for Good

We commonly think of using marketing principles and practices to promote business and grow revenue. And that’s fine – up to a certain point. However, marketing can be so much more.

We know that marketing is used to grow businesses and organizations. Increased revenue usually leads to new research and development, new products and services, and strong returns for shareholders and stakeholders. Lots of people benefit from this. And that’s good. But it is only part of the story. Marketing can also be used to help society in very powerful ways.

In one example, advertising agency Havas Tel Aviv recently used it powers for good when it partnered with Laisha, a popular women’s magazine in Tel Aviv, to promote a domestic abuse hotline. A study of women in Israel had found that most women were not even aware that a  hotline number for domestic abuse even existed. Therefore, for the promotion the agency created a simple cover page for Laisha with the 24/7 helpline phone number in large white letters on a black background. Basically, making it an impossible-to-miss cover. The text stated that women who suffer from domestic violence are not alone – and that the anonymous phone line offers help in all languages.

The result: An increase in calls to the hotline by 500%!

Musicians and artists also are powerful contributors to social programs and awareness. Several years ago rapper Logic recorded the song titled “1-800-273-8255,” directing young people to the National Suicide Prevention Lifeline phone number. The song chronicled a youth’s journey through depression to a suicide prevention call. The song was nominated for Grammy awards for song of the year and best music video as well as a MTV music video award. But the most stunning result was the increase in calls for help during its release.

The results: 9,915 more calls to the support line were made in the 34-day period after the Grammy and MTV Music Award shows! The song’s impact contributed to an estimated 245 fewer suicides over the same period. That’s powerful!

Consider: Marketing makes a difference in many ways.

Group Activities and Discussion Questions:

  1. Discuss how marketers can be active with social responsibility and justice.
  2. What skill sets translate from corporations to community service?
  3. Show Logic’s video: https://youtu.be/Kb24RrHIbFk
  4. Divide students into teams. Have each team select a social issue or a community program that they admire.
  5. Challenge each team to develop a marketing tactic to highlight the ways in with the programs can help people.
  6. Alternatively, have each team research an existing social program and analyze its messaging and tactics (ex: Red Cross, Big Brothers, etc.)

Sources: Ansari, T., (Dec. 15, 2021). Rapper Logic’s song about suicide prevention may have saved hundreds of lives, study says, Wall Street Journal; Griner, D. (Dec. 2, 2021). This magazine cover boosted calls to an abuse hotline by 500%. Ad Week.

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SiriusXM Buys Pandora

SiriusXM satellite radio provider is buying music streaming service Pandora for a $3.5 billion stock deal. The deal will create the world’s largest audio entertainment company. Why should SiriusXM buy Pandora? Because SiriusXM wants to gain people who listen to music but don’t want to pay for the premium SiriusXM service.

SiriusXM offers streaming without advertisements for $10.99 to $20.99 per month per car with up to 140+ channels, or streaming on any device for the same amount of $10.99 to $20.99 per month, or combine both options for all-access streaming. SiriusXM has 36 million subscribers in North America.

On the other hand, Pandora, which has 70 million active listeners (5.6 million who are paying members) can be used at no-cost as long as listeners don’t mind listening to advertisements. Or, listeners can buy monthly subscriptions at $4.99 or $9.99 per month for services that eliminate advertisements and offer personalized stations and create playlists, plus other options.

SiriusXM isn’t new to Pandora; it provided $480 million of funding to Pandora last year. Pandora faces stiff competition from other music services such as Apple Music, Amazon, Tidal, and Spotify.

The war to gain new listeners is heating up!

Group Activities and Discussion Questions:

  1. Poll students:How much music do they listen to each day? Where is their music coming from? How much do they pay each month?
  2. View SiriusXM: https://www.siriusxm.com/
  3. View Pandora: https://www.pandora.com/
  4. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  5. Which strategy is SiriusXM using? Why?
  6. Divide students into teams. Have each team research the different prices and packages offered by each music streaming company.
  7. Compare price structures. Which offers listeners the better deal?

Source:  Wall Street Journal, New York Times, other sources

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Is Owning Music at an End?

When was the last time you purchased music? Not music streaming, but actually bought a physical product for money?

If you are like most consumers, it has probably been a long time since you purchased a CD. In the last decade, CD sales have fallen 80% – from 450 million units to 89 million units! Consider the lasting impact of the declining sales, not only on the record industry, but also in manufacturing. Many of today’s car companies (e.g., Tesla, Ford, Toyota) no longer even include a CD player in the car dashboard, and portable CD players are hard to find.

Even downloads of music have taken a big hit, decreasing 58% since the peak in 2012. Artists have also noted the trends; Bruce Springsteen released his latest box set exclusively on vinyl – no CD options. CDs are doing well in some markets though – in Japan, where streaming has not yet taken off, 72% of music sales were physical CDs. But look around U.S. retail stores – where are the CDs even stocked?

It’s not just streaming that has killed off the CD. Vinyl records have grown from less than a million units in 2007 to more than 14 million in 2017. Vinyl sales even hit a 25-year high last year and new vinyl record manufacturing is popping up to replace CD manufacturing.

Here are some numbers to note about music sales:

  • CD sales: 712 million units in 2001, to 88.6 million units in 2017.
  • Track downloads: 1.3 billion sold per year from 2011 – 2013; 555 million sold in 2017
  • Song streams: 118.1 billion in 2013; 618 billion in 2017
  • Vinyl: 990,000 units in 2007; 14.3 million units in 2017

How do you buy your music?

Group Activities and Discussion Questions:

  1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  2. Poll students: When did they last purchase music? What form was it in?
  3. Where did they last see CDs or vinyl music? What was the inventory level?
  4. Who has a CD player in their car?
  5. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
  6. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle.

Source: Knopper, S. (14 June, 2018). The end of owning music. Rolling Stone.

 

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