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Professional Postgraduate Diploma in Marketing

64 – Strategic Marketing in Practice

Note: In an attempt to present an accurate and representative account of a candidate’s piece of work, the answers have been reproduced in their original form and may therefore contain grammatical, terminological and formatting errors and inconsistencies.

© The Chartered Institute of Marketing 2007

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Examination Papers Each subject differs slightly from the other, and you need to make sure that you are familiar with the style of question and the requirements of the different examinations.

Common Mistakes Reports from examiners are published regularly and are available to students. Even a casual look through these reveals the same concerns and problems coming up time and time again across all subject areas. Most of these common mistakes are caused by a lack of exam technique and examination practice.

There are three basic question types: 1. The mini case or scenario or article Part A of all papers (except Strategic Marketing in Practice) has a mini case, scenario or article, with compulsory questions. This represents only part of the paper, but students are required to make marketing decisions based on the information given. Spend time evaluating the material given in the case, but do not rewrite this for the examiners. You will gain credit for the decisions and recommendations you make on the basis of the analysis, but nothing for the analysis itself. This is a compulsory part of the paper designed to evaluate practical marketing skills. Make sure you allocate enough time to it, but do not ignore the other part of the paper. 2. The straightforward exam question You are expected to make a choice from a number of questions. There is some skill necessary in selecting the questions which you are best prepared to answer. Read the questions through carefully before making your choice. Think about how you will tackle the question. Check you are answering the question in the context in which it has been set, then make a rough plan before you start writing. Remember that examiners are interested in quality answers. Not answering the question set The examiners are looking for both relevant content and its application in an appropriate context. You must be able to work flexibly with the material you have studied, answering different questions in different ways, even though the fundamental theory remains the same. Presentation and style Both of these essential business skills are of great importance to a marketing practitioner. The examiners expect work to be presented in a well-written, professional manner. ‘Report’ style, using sub-headings and indented numbering for points etc is not only acceptable, but looks much more commercially credible than academic essays. This approach allows you to break the work up, highlight the key points, and structure your answer in a logical way. Take care with your grammar and use of language; small errors can change the sense considerably. The scarce resource in an examination is time. You must control the allocation of this resource carefully. Read the instructions to the paper carefully, and identify what has to be done and how the marks are allocated. Spread your time proportionately to the mark allocation, ie if the mini case = 40% of marks, allocate 40% of your time to it. Allow a few minutes at the end to read through your work.

3. Strategic Marketing in Practice (Professional Postgraduate Diploma in Marketing) The Case Study is sent out 5 weeks before the paper is sat. Students should complete their analysis and preparation before the examination takes place. The questions asked will include extra information about the case which will have to be used to obtain best marks.

For example it is no good only completing four questions when you should have done five. It is so much harder for you to pass on just four questions. Have a clock or watch with you and be ruthless in your timekeeping. If you find you are spending too long on an answer, you are probably not answering the question specifically enough.

The examiners expect relevant theory to be illustrated with practical examples and illustrations. These can be drawn from your own marketing experience, or observations, or your reading. A theory paper without evidence of practical application is unlikely to be successful.

Special Notice © CIM Holdings Ltd 2004. All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or inadvertently to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs & Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1P 9HE

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The specimen answers provide examples of answers that can be reasonably written within the allocated time. The answers demonstrate what is required to achieve a good pass mark, unless otherwise indicated in the Comments. Remember when revising from these examples that there are no right or wrong answers. The examiners are looking for you to apply your own marketing knowledge and skills to the question set. These answers should be indicative of the content and format that the examiners expect to see. To give you the best chance of passing your exams, these specimen answers can be used in conjunction with the examiners’ reports, in which the senior examiner for each subject outlines best practice. The examiners’ reports are available from CIM Direct and on the CIM student website, www.cim/ We hope you find these specimen answers useful and informative. Although we cannot enter into correspondence, we would welcome comments or feedback, which should be sent to or to CIM Publishing at the Moor Hall address.

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critically evaluate the communication channels that small record companies might use to ensure success for new. Question One Critically assess and justify the options that you could develop to strategically position the Furze within the music marketplace. (25 marks) (Total 100 marks) Page 4 of 31 . to prepare answers to the following questions. upcoming bands. using contemporary marketing strategies.CIM Specimen Answers Professional Postgraduate Diploma in Marketing Introduction There are two specimen answers provided to illustrate good answers to the following set questions. including a critical view of the opportunities offered by the various media channels. 25 marks will be allocated for the prepared analysis of the case and its application to the questions above. (25 marks) Question Three Explain and evaluate the key marketing metrics you would utilise to gauge the success of a new band that has been signed under your label. The specimen answers should be used as illustrations of good ways to answer questions and not as right or wrong answers Part A Answer ALL questions The Board has asked you. as the appointed Marketing Manager. (25 marks) Question Two Utilising the information given in the case study. (25 marks) In addition.

Technology as ever is making serious inroads into what was a very profitable global business sector. The normal distribution channels are becoming fragmented and many small record labels are also making inroads into companies such as EMI with large market shares. • Analysis will be in the form of making sense of the material in the case study rather than repeating that material • Analysis prepared and attached to the exam script will be no more than 6 pages long • Clear references will be made to the relevant analysis which is attached to the script • Analysis will use relevant theoretical models and analytical tools • Clear justifications will be made for recommendations • The answer will specifically relate to the question and not include irrelevant material • Answers will be based on a strong theoretical underpinning. This sector is now wide open to several different influences and distribution networks. using relevant theories and models where necessary • Objectives will be SMART and answers will show a separation of corporate and marketing objectives • Answers will be strategic • Adequate credit will be given to marketing research • A good understanding of international marketing and integrated marketing communications will be shown • Good awareness of contemporary international business and marketing issues will be demonstrated • Answers will be balanced in length • Clear attempt at analysis and synthesis and cohesion in answers will be shown Poor answers • Recommendations will be on a partial understanding of the case study • Analysis will be mainly a repeat of the case study material. and/or will be inadequate • Answers will not refer/make inadequate references to the attached analysis • Analysis will not be based on theoretical models and tools • There will be a lack of adequate justification • Brief bullet points will be used offering inadequate explanation/incomplete sentences • There will be a lack of theoretical underpinning in the answers • Objectives will be vague and corporate and marketing objectives will not be clearly distinguished • Answers will be tactical and miss the overall picture/not be synthesised with other answers • The role of marketing research will not be highlighted • There will be a lack of adequate understanding of international marketing and integrated marketing communications • Lack of understanding of contemporary business and marketing issues will be evident • Will include unreasonably long or short answers • Answers will be patchy and lack cohesion and synthesis Page 5 of 31 . The questions are more about strategic positioning and communication rather than straightforward plans. The case study also features a new band called the Furze.Case Study This case study has been set within the turbulent music industry. FOR ALL QUESTIONS Examiners should consider the following criteria in marking ALL three answers: Good answers • Any recommendations will be based on a good analysis of the relevant parts of the case study. Some bands and individuals are also going direct to the consumer through the Internet using MySpace and YouTube.

candidates could look at a range of options. Following on from this.Question 1 Critically assess and justify the options that you could develop to strategically position the Furze within the music marketplace using contemporary marketing strategies. These are: a) b) c) d) e) f) g) h) i) j) k) l) m) The decline of the CD market The ability for bands to develop and distribute their music through the Internet The latent power of the large record companies The power of radio to influence music sales The important role of pluggers The need to get good PR Exposure to the audience that is likely to support a band’s music and style The new developments in mobile technology The role of download sites such as iTunes Understanding the role of major bands as an influencing factor The importance of social networking in disseminating music The way in which ‘old’ artists are utilising the retail channels Understanding and exploiting the key music segments. Most importantly they should be able to critically assess various options and discuss their pros and cons. they could also be innovative in their digital applications (The Furze already are). Their own site could be used to develop the cartoons. the marketing and also sample downloads. The strategies could adopt a ‘green’ aspect as some bands are off setting their carbon footprint by planting trees. 2) 3) Candidates should utilise relevant matrices and perceptual positioning maps. For instance an Acceptability/Suitability/Feasibility matrix could be put to good use in assessing various options. The analyses should take into account the key issues facing this sector first. (25 Marks) In developing answers to this question candidates need to utilise good strategic analyses to enable them to consider positioning strategies within the marketplace. To align themselves to a mobile firm and start to offer direct downloads to the segment of the audience that likes their type of music. Work closely with record stations and pluggers to get maximum exposure and at the same time digitally distributing the music. A discussion of two or more suitable options in detail Positioning strategies Total 15 Marks 10 Marks --------------------25 Marks Page 6 of 31 . some of these could be: 1) To develop a MySpace site linked to their own site which is then linked to sites which allow paid downloads for albums.

gigs and news magazines The potential of getting PR at award ceremonies and music channels such as MTV Developing deals with mobile networks Developing all this on a low budget! Network development Communication TV/ celebrities E-mails Word of mouth BLOGS and Internet The Band Gigs Mobile networks TV Music Channels Music Press Comics (Innovative) In undertaking this task. what would be the best ways of doing this? The main communication issues surround: a) b) c) d) e) f) The links with the radio stations and pluggers PR through blogs on the Internet. They will also discuss and integrated approach to developing a brand and offer a critique of each of the approaches outlined above. candidates should analyse the tables in the case study: a) The OFCOM tables on how people interact with different media b) The RAJAR tables c) The tables dealing with segmentation of audiences Good students will also discuss the possibilities offered by quadruple play with companies such as Virgin Media (formerly NTL). Discussion of main channels A critique and creative approach 10 Marks 15 Marks ______________ 25 Marks Page 7 of 31 . Also candidates should appreciate the global reach of this market. With the bewildering range of media outlets now available. One of the most important things that a record company has to undertake is PR and communications for a new band. (25 Marks) Communication is a major issue in marketing today. including a critical view of the opportunities offered by the various media channels.Question 2 Utilising the detail given in the case study critically evaluate the communication channels that small record companies might use to ensure success for new upcoming bands. own website.

(25 Marks) For every band that attempts to grab the headlines. The industry now has more sources of revenue from ring tones. license agreements with TV shows and videogames. It is important that the candidates delve into the detail and also utilise any marketing models that they feels are useful in justifying their answers. than ever before. A well defined set of metrics will allow the company to ascertain the band’s success. With the proliferation of channels. any data is better than no data. Good candidates may also discuss how networks contribute to success.Question 3 Critically evaluate the key marketing metrics you would utilise to gauge the success of a new band that has been signed under your label. Page 8 of 31 . Individuals who stick to general marketing plans should be penalised. Discussion of key metrics Critical analysis 15 marks 10 marks ______________ 25 marks Summary This case is quite contemporary in nature and therefore allows candidates much scope in developing interesting answers. concert tickets. however. Candidates should discuss that some of these metrics can be variable in terms of accuracy but from a marketing point of view. the key marketing metrics that should be discussed and evaluated are: a) b) c) d) e) f) Digital downloads and the sources CD sales Gig audiences Amount of publicity generated PR columns Amount of exposure on TV channels. so measuring success in settings that are different from the ‘normal’ CD sales is important. it is difficult to gauge success. their ultimate success depends on their ability to attract audiences and then to translate this attention into sales. It is expected that a range of interesting answers will be put forward based on the details provided.

as a collective. as illustrated in fig 5. currently only attracting 8% of the download market (fig 3). Fans can now access music directly from bands (B2C) via social networking websites such as UTube and MySpace. Fans can also access music through record label distribution networks (B2B) such as on-line stores and high street retailers.SPECIMEN ANSWER 1 Question 1 To: From: Date: Managing Director Marketing Manager 8 June 2007 This report contains the strategic options available to the Furze within the current marketplace. Over the last ten years. It is important to emphasise that digital music is still in an early phase of development. Consequently. iv) Section 4 – Tactics and Actions that may need to be undertaken to ensure the strategic options are achieved. pod casts. The report will follow a well established marketing framework known as SOSTAC and will consist of the following sections:i) Section 1 – Music Industry Analysis. The music industry has been forced to change as technology and digital merchandise have shifted power to the consumer – who are now in the driving seat demanding much more involvement with music context such as play list. personalisation. they have lost income to copyright privacy and are only just beginning to find consumer centred solutions to managing digital copyright and thus protecting income streams. Music Industry Analysis The music industry and the role of record labels are currently undergoing a rapid transformation. which will outline the current issues and trends within the marketplace. ring tones. ii) Section 2 – Objectives of the label for Furze. However. it has altered the way in which bands can now interact with their fans and industry players. Page 9 of 31 . this then allows them to share this music with peers (P2P). Technology has also affected the ways in which record labels and bands can generate income. The fragmentation of the industry. There is evidence that the new digital formats such as downloads and MP3 players are becoming more popular and are beginning to erode CD sales – a trend that figure 4 illustrates is expected to continue over the years to come (fig 4). record labels and the music industry have been slow to react to both the opportunities and threats of digital music as indicated in Figure 15. has increased the numbers of channels through which the music listening public can access music. iii) Section 3 – Strategic Options that will establish the direction which the Furze will follow. meaning at the present time there are only two business models in operation. file sharing and of course simply enjoying the music (fig 1). technical advancement has intensified the competitive environment.

A strong brand (fig 10) helps to differentiate products. Tactics and Actions In order to develop the Furze as a digital only band that owns their own copyright. The differentiation strategy would be based on:a) Digital ONLY – in order to give the band a unique position. indicates the quality of an item and can act as a source of competitive advantage. the Band will own their own copyright – with the label taking a ‘top slice’ of their total income. this should be the platform used to position the Furze. one that is rational and this needs to be emphasized to the industry. and one that is emotional. the future does appear to lie with digital music – as such. Objectives Given the potential digital music has to offer in terms of being the future format within the industry. and this needs to be emphasized to the fans. It’s important that the Furze brand conveys the fact that they are a digital only band and one that owns their own copyright. small record labels such as ourselves need to review whether this is a basis upon which we want to launch our new band. Branding therefore provides reciprocal benefits for both record label and the band. The brand pyramid has two sides. Therefore – our strategic objectives over the next 18 months would be:a) to position the Furze as a digital only band b) To achieve a top ten digital hit Strategy In order to position the Furze as a digital only band. their music will only be available via digital channels. the label will need to:a) Develop brand identity b) Engage in exclusive agreement with channel members.However. as it helps channel customers and fans identity with a specific product. An integral part of the Furze brand identity will be the brand position statement. creates a distinctive image. Therefore an immediate strategic concern is to decide if the label wishes to pursue both a digital and physical position for the Furze. Page 10 of 31 . and I would suggest:The Furze – ‘Digital today for a Digital tomorrow’ This would be supported by the brand pyramid illustrated over the page. the label would need to pursue a differentiation strategy that clearly indicates why the Furze is different from other bands. service or musical sound – thus reducing the perceived risk of purchasing decisions. Building the Furze Brand Kotler says that without brands products become commodities. b) Own Copyright – in order to better facilitate licence negotiations. including the Furze.

¾ PR – articles in NME or web blogs say how good their music is. ¾ Internet – the band can have their own website. as indicated in Figure 17.Rational Emotional Judgement Performance Image Feeling Loyalty attachm Cool Artist ic Freedo m Digital 24/7 access Personalised The way forward. personal selling. ¾ Personal Selling – the Furze can gain brand reputation through concerts and other live performances. the technological advancement and the advent of digital music now means the Furze has a number of ways to communicate its brand. ¾ Advertising – in magazines such as NME to raise the profile of the Furze to both fans and music industry players. and a site on Y-Tube or MySpace where their music can be available for fans to ‘taste’ and then buy. In order to make them stand out from other young bands they should be promoted as a ‘digital only’ band as this is where the music industry is heading over the next few years. Cutting edge Risk Tomorrow – today Forward thinking Assets not artist Music channel and fans The Furze Brand Communicating the Brand to Fans As has been previously noted. They could use a combination of advertising. Summary I would recommend that Furze be positioned within the market based on a differentiation strategy. Internet. ¾ Sale Promotion – giving free downloads via Internet social communities to attract new faces. PR and Sales Promotions. Page 11 of 31 .

Therefore the relationships between record label and stakeholder (fig 9) has now become a critical source of competitive advantage to both the label and the Furze. HMV. Comments This is an answer that follows a logical line of argument. Accessing Distribution Channels The fragmentation and increased competitive rivalry as illustrated in Figure 2. c) P2P – where fans share music with other fans by using file sharing technology. this figure is increasing rapidly.Furthermore. now means that the key to success lies with a label’s ability to access channels through which to distribute music in either a digital or physical format. is structured clearly and includes a good analysis of the industry. This position should be supported by building their brands to emphasise these messages. but supported by other communication tools such as personal selling. the increased number of distribution channels to the end-consumer consists of three main avenues: a) B2B. Question 2 To: From: Date: Managing Director Marketing Manager 8 June 2007 Subject: Distribution Channels and Relationships It has already been noted that the advent of digital technology has significantly impacted on how the public access the music of their choice (fig 5). as being digital and having artistic freedom. There now exists a need to develop relationships with important stakeholders in order to secure play time of a bands music based on satisfying channel customers’ needs. Page 12 of 31 . The brand could be communicated using the Internet directly to fans. b) B2C – music is distributed by the bands directly to the end-consumer by social networks such as Y-Tube or MySpace. PR and sales promotions. As illustrated in Figure 5. they should own their own copyright which will enable them to enter into licence agreement without them being overly complicated and multi party. It is worth reminding ourselves that whilst digital downloads only represent 8% of the distributed b y the record labels to other wholesalers or online retailers such as ITunes. It would have been even better if the answer included references to other options for positioning (as required by the question) and a stronger justification for the proposed basis for positioning.

SMS message and offering fans exclusive deals. such as direct mail. such as the ability to personalize music by being given access to the pro-tool files from which they can make their own track sound. As the importance of such networks increases. it is still critically important for new bands to gain play time on national radio. Summary There can be no doubt that the digitalization of artists’ music is the future. develop and retain them through the stages of the value ladders (fig 13). The opportunities presented by mobile phone downloads to the ability of a fan to access a ‘song’ immediately. social network sites are not yet lucrative and mobile phone downloads are dependent on the phone’s capability. However. As digital downloads only represent 8% of the market share. as a source of income. ¾ Band Website – the creation of a band’s website will give the record label access to the fans details. by seeking to acquire. 92% of music is distributed through more traditional routes such as wholesalers and retailers through the manufacture and retail of physical CDs. this option will not result in the generation of royalties due to the ease of file sharing and the absence of DRM. and thus enables impulse buying. and therefore the role of pluggers and promoters is still very important. it is through these new channels that their music needs to be distributed (fig 17):¾ Social Networks – eg. radio stations are beginning to be informed. Y-Tube and MySpace present an excellent opportunity to raise awareness of the band’s music.As a record label we need to focus on converting channel customers into our partners by matching and importing our value proposition to them (fig12). Despite the advent of digital. and including music which ahs a large Internet following to be included on their play list.the downloading of music to mobile phones is steadily increasing as a channel to the end user. The use of digital music content distributed either by either the Internet or mobile phone technology can vastly increase the target audience for the band’s music. but this just relates to the format. It is still very important for bands to play concerts and festivals so that fans are able to hear them live. Page 13 of 31 . ¾ Mobile Phones . They can raise awareness through being used for viral and affiliate marketing technique – this is where fans market the band’s music to other fans. The label can use social networks to mobilise fans’ reactions and advertise future concerts and album releases. Therefore they are useful up to a point and thereafter the major income streams are delivered through physical sales of CDs via off-line channels such as high street retailers or As the Furze strategic position is to access various digital channels to differentiate itself as a digital only based label. but is subject to the fans having the correctly enabled phone. However. what is important is the label ability to create relationships within the industry that give us access to those distribution options. It also enables the use of viral and affiliate marketing techniques outlined in the social network section. from which the label can engage in various relationship marketing techniques.

could have also been included. c) Cost. Once again this is a simple ratio which is easily understood but like the RoI does not account for the time value of money. it does not account for the time value of money or the risk associated over years. the label may set a specific time period over which the investment needed to be paid back.Cost. Volume. A BE. However. Page 14 of 31 . indicates the minimum level of sales required to neither make a profit or loss. Once again. Nevertheless. the label may consider dropping them. there are some good and relevant suggestions contained in the answer. it is necessary to implement a robust control and monitoring framework in order to protect the label’s interests. and they can be combined to undertake a breakeven analysis. The numbers of suggestions however are limited and other important options such as PR (see marking scheme). Financial Indicators The financial measure will evaluate the band in terms of its financial/investment contribution to the label. volume and profit are key financial indicators. If a band failed to do this. I would suggest such a framework should be sub-divided into a) Financial. The label would set a figure below which an investment would not be made. b) Payback – this is a ratio expressed as the number of years it takes to payback an initial investment amount. RoI is a simple ratio that is understood by both financial and non-financial managers. Question 3 To: From: Date: Managing Director Marketing Manger 8 June 2007 Subject: Monitoring of Bands Success Given the vast sums of money required to support and develop new and emerging talent. b) Performance and c) Awareness sections.Comments The report could have been titled better. in this case the money needed to support the band RoI = benefits X 100 = album revenue X 100 Cost cost of advertising If the calculation is over 100% this indicates that the investment is positive as more benefits have been obtained. a) RoI – return on investment is a financial ratio that assesses the benefits from a particular investment. Profit Analysis (CVP) . as illustrated in Figures 18 and 19.

The label would need to be sure of what a high or low level means to them. e. this would be indicated by the records album position in the charts. If the % airtime is low. a structured answer which contains relevant marketing metrics. the success of either the band or the campaign can be measured. Such monitoring and control can act as an early warning system to ensure the label does not invest irresponsibly in any new bands and that sums invested are earning the required returns. In Figure 19.000 pounds profit. it could indicate that the promotional mix is not hitting the target audience in a meaningful way. and CVP is an excellent tool to monitor ongoing financial performance. Are they attracting enough grass roots fans to come and see them perform live? The label may see that audiences consistently below 75% full are too low to continue to support the band as they are not popular enough. they need to sell 375 copies t o breakeven. Awareness Indicators a) Band Awareness = this could be tested at festivals by asking how many fans and industry players have heard of the band. Once again. b) Concerts capacity = in terms of how full the band’s live concerts are. The following six pages of analysis were produced by the student to accompany the answers. the label needs to have success and failure criteria in each of the categories.g. A slightly more detailed discussion of the suggested metrics. TV appearance. would have made this a better answer. the BE analysis is combined with turnover and indicates that the Furze need to undertake 435 gigs per year to earn 80. c) Website Clicks = the number of website clicks could be used to monitor the general level of interest in the bank and the reaction to any specific promotional campaign. d) TV Appearance = this would indicate the degree to which the band had broken through into the big-time. Page 15 of 31 . To ensure the indicators are meaningful and used effectively.In Figure 18 relating to the Furze Album. b) % Airtime Radio = this would indicate how much airtime was being secured. either as a result of a plugger/promoter. Low awareness may indicate that the promotional mix is not suitably targeted or that the band is not popular. or as the result of Internet marketing. Financial indicators such as RoI and Payback are useful in making investment decisions. Comments Again. Performance Indicators Performance based measures are focused on how well the record or album is performing in the market place. If a band does not make the top 100 with their songs the label may use this as a criterion to drop them. a) Market Share = in terms of the music industry.

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formerly known as Kid Galahad are a great example of a British band that transformed a childhood passion of music into a large following. fans are kept in close gaze.1) on the industry SWOT analysis. and other great names under big labels. focus and hard work. notwithstanding that they are without debt. they have used their experience through the starting up and teething emergence to create a new identity – to take on the music world following a string of disappointments with a record label. it is important to analyse how they have got to where they are. SWOT Furze lacks the capital and all that it takes to translate its following into the mega sales that characterized the Beatles.SPECIMEN ANSWER 2 Question 1 To: From: Date: The Board of Directors – Generation Music Ltd Marketing Manager 8 June 2007 Positioning Furze. has not upstaged the old order (fig. where. Situation Analysis Furze. through social sites and proprietary ownership of a website. See f7. Revolution however inspiring. Having won a national competition and produced a great single with a major band. ¾ To hold out its brand as ethical Strategic Options 1-Furze as a challenger Furze shall become a challenger to the big band and record labels. Yet there are opportunities in the growth and changes going on in the music industry (fig1) mainly in merchandising and online sales of digital downloads. based on long term relationships. using CRM. which tune will hold the fan on In positioning Furze on a strategic ladder of competitive advantage. through innovation. Strategic objective ¾ To position Furze as the emerging music maestros of the decade ¾ To raise awareness of Furze far beyond the United Kingdom.1) new opportunities on the Internet. pursuing its innovative approach to owning and running its own label. And the revolution – Internet (fig. They lack the experience to work out and make money despite a large following as their current analysis on income and expenditure reveals. to Europe and America ¾ To build a strong fan following. Why important? This is by consistently Page 22 of 31 .

Furze is moving tandem in tandem with the motion of the future. promotion and availability of digital downloads for fans through the Internet. one of a regional affinity. and riding higher where the music happens without looking at who is pushing the fans back from stage. Innovation to the way the fans are made to live in with their maestro. The trail of devices and how music is served is through digital devices. In this strategic direction. Germany and America are large music bases. The trail of devices and how music is served is through digital devices. There will be less need to justify. Customer orientation fit requires working in the line of the fans’ passion – music. and there. or by outsourcing its function to keep costs low. when maintained with a CRM. and vital market advantage. They can become a referral rendezvous to its Internet face. will keep them in focus of a sustainable competitive advantage. 2-New boys of the West The strategy here is marching on. Comments A degree of correction and editing has been applied before publication here. bring in more staff to work. Plastic-less. A large number of candidates discussed only one option in their answers to this Page 23 of 31 . There can only be one Furze. 3 Conclusion Furze have employed the innovation paradigm of new technology that will challenge without incurring back a counter attack. and skirting around this passion should be their love – content development on the website. can be exploited to create the base. there is a relationship. When music is the talk in Europe. Furze followers are just one group of people who also hear other musicians. sets the world alight in China. How to do it A strong. with its organizational restructuring. Its presence in global social sites such as YouTube and Shoo.The paradigm innovation of using the Internet and running of its own website creates a great deal of advantage that. 3-Ethical Challenger Furze online model has taken on the green train. and adapted customer orientation philosophy. was quite good in that it correctly discussed more than one possible viable option for positioning. where Furze will be: ‘What gig is coming up next week? ‘Look who is here! ‘How the Furze got out of the dressing room at the Manchester gig last summer…’ – all create a following. Americans want to feel it [See appendix 15-16 of volume from USA]. When Americans say this music is it. Japan and Africa. How to do it Focus online. How some of them came to the UK last summer and had a ‘smashing and wicked Furze gig’. His music is unique. then MTV and other national radios wants to play it. fresh life music. can keep the magic in focus of reality. Their low carbon footprint over the long conscious green battle will run with the success of the band in the long term. What happens here. The answer. however. Customer relationships and the content (?) system development on its Internet site will ensure loyalty. Use of online music promotion company gets the mission through exploring information held by Furze fans in America. Fans from America can have their special side on the website and it shall be interactive with inputs from fans sharing all their music experience. Europe.

It stays just like that and dispels the old views of big labels. Social Network They are sites which have proved great. Creating awareness. The Internet having created the means. Appendix 9 talks of the daring feat of Garry Raymond who put up rock band Koopa into top 40. A small record company needs to exploit the site to promote its new artist. for little or no cost. Most of them have been deployed through the use of the Internet. Online Stores Page 24 of 31 . Once they hear other want to spread the word. Traditional recode labels lack more sophisticated and measurable metrics of knowing which music will be purchased. serving many different purposes for users. Critical of these are: Online: 1) The social site 2) Mobile telephone (online) 3) Music library website Offline 1) Local tours (gigs) 2) Circulation through national/local newspapers Internet The Internet as a general medium through ownership of website as shown by Furze can be used to develop content which is useful and communicates with fans. Relationship is virtual (fig 4). (see appendix) Owning a website and promoting an upcoming artist on it is a clear example of building a relationship and ensuring that the fans and the artist are in touch. Question 2 To: Board of Directors – Generation Music Ltd From: Marketing Manager Date 8 June 2007 Critical Evaluation of Communication Channels There are several innovative communication channels open to use with the advent of technology. The third option here could have been explained better. So without the following of a fan base it is risky to sign a new artist. Now record companies can bring out the fans for the upcoming artist. The numbers of fans can be measured their use and visit of website.question and lost marks as a result. Viral marketing and awareness is the key. The concentration has created its unique social order of global interest of various people living far apart. This first requisite can now be much less of an issue as assessment of an upcoming artist or band through could be done using the Internet. This is how much the Internet can do. innovation in the form of a paradigm shift by a younger generation has deployed various means. The fundamental basis of the band is the fan.

fans. Awareness does not guarantee cash. Finance This takes account of their future in the eyes of the public. A clear deduction can be made for the cash flow analysis in order to get a net profit value. (This part of the answer was difficult to understand). The offline (This part of the answer was impossible to read). and the wider public. This answer received a fair pass mark. can for inoperability not reach many fans using different media. sales value from charts. Question 3 Key Marketing Metric In evaluating the key metrics it is important to list them under the balance score card valuation. ‘Gun Crime’ is the ?? youth so music of this genre may never find favour with the wider public as most radio stations will decline playing them. They are good for revenue generation for upcoming artists who will need money. where cash flow of the present is discounted against future cash. Page 25 of 31 . A new band taking its music to be sold on the Internet. taking account of interest and other factors. Social activities on big websites means person-to-person file sharing. Like the previous two answers it was difficult to understand in part. Comments This answer was rather short. but the presentation of the answer has detracted from the content. Comments Again the candidate has read the question correctly and has tried to give an answer that progresses logically. Stakeholders include the pluggers. ITune. See Appendix 5. utilizing possible numbers for their fans following them to gigs. Financial metrics are the most popular used. With this comes the free music (fig 3 and fig 1 of supplement). Using the balance score card there are indices that will be taken into account – particularly with the stake holders that the band forms part of in the wider market. Also. Singles In coming up with other financial measure – from their previous summary of their sales expenditure and revenue summary. more references to the appended analysis would have been better. which will give a clear view of other aspects that connect their market value. Account must be taken of whether their music promotes the common good of the society. Online music sale still faces its unresolved dilemma – the DRM-free versus inter-operability.These are offshoots of musical online library and stores that sell music off the shelf at a price less than a pound. which makes the success of small and upcoming bands. ie. The return on investment that is likely to accrue from promotion and production of their music measure against the album they are releasing. Other measures are: Stakeholder value It will be useful to know how the various industry stake holders perceive the band and its brand.

Page 26 of 31 . It received a low pass mark. The following six pages of analysis were produced by the student to accompany the answers. and could have been written more clearly.It could have included several more measures (see the marking scheme).

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