MUS101 Unit 4

What are some advantages to taking a job in the music products industry?

That there are more job opportunities  than any other sector of the industry. Has more traditional and stable jobs. Close to 15,000 jobs are available in this sector per year.

• These jobs are more likely to be advertised and accessible for young professionals

• Often provide traditional benefits such as heath care, retirement packages

What are some examples of jobs in the music products sector?

• Retailing opportunities- this can be for both small and big companies.

• Wholesale opportunities- Inside sales rep for wholesaler or independent reps.

• Manufacture opportunities- Production jobs, product managers, design tool.

What are the four major segments of the percussion market?

1. Combo- drum sets.

2. Orchestral- school music.

3. Marching- related to schools as well

4. World- All the ethnic instruments

How are drum set sales doing in recent years?

That there has been paralleled market growth. This is seen with the rise of rock bands and pop music incorporating more complex drum set options. Additonally, digital drum sets have more moderate growth in recent years, pitting severe downward pressure on the rational combo drum set.

How has the acoustic piano market done in recent years?

That acoustic piano sales continue to fall since 1909. They have huge financing issues for consumers.

What area of the piano market has seen sales growth?

There has been a rise in portable keyboards and its use in pop music.

What is the fundamental difference between a lease pool and a rent-to-own program?

Lease Pool- You never pay it off, it is like renting a car, you have no intention of buying it. Works really well for changing some instruments.

Rent Pool- More frequently seen with band instruments, usually a rent tone instrument, money you can apply towards the purchase.

What is a college sampler program?

Builds brand and dealer loyalty while educators are still in college music education programs.

- Provided at no cost to the schools/students for use in music techniques class.

What is the difference between “temporarily” and “permanently” out of print notifications in the print music market?

Temporarily- Print publisher has run out of copies for a amount of time.

Permanently- Print publisher has officially/permanently run out of copies.

What is the difference between “perishable” and “capital” goods in the commercial audio business?

Perishable: Are low cost, wear out quickly. Are rented at high margin relative to their cost.

• Ex. Microphones, cables, microphone stands, monitor speakers

Capital Goods: Are high costs, last longer. Are worthwhile, repair services are useful. Are rented at a lower rate relative to their cost.

What do we mean by integration in the commercial audio business?

Are products that are used for large spaces, is either permanently installed or transported in some cases, are extremely large.

-Not represented by traditional music retailer

How do we generally define music accessories?

Are products that are under $100. Have no franchises, are consumables that must be frequently replaced, have easy add-ons to make the buying experience all-inclusive.

How do margins vary between consumable versus add-on sales?

Consumables: Are poor for repeat- have thin margins.

Add-on: Are often good for a one time purchase.

What two ways can technicians generally get paid?

Salary and hourly.

What are the three symbiotic partners in the school music market that interact with retailers?

Educator, Parent, Student

What two barriers does the school music market present that are overcome by rental plans?

1. High cost of entry

2. High risk of a student dropout

What is NAMM and what is its basic role?  5 main functions?

NAMM: National Association of Music Merchants

• Is the main trade organization for the whole industry

Five main functions:

1. Host trade shows

2. Grow membership base

3. Professional development (educate membership)

4. Market development

5. Become a global partner

Music Achievement Council (MAC)

• Responsible for educating the public on the value of music, ex. Dealing with school districts and showing the importance of keeping music in their curriculum.

National Association for Music Educators (NAfME)

• Responsible for keeping music in our schools and adding training assistant to educators

National Association of Band Instrument Manufactures (NABIM)

• Organizes the markers of band instruments

National Association of Professional Band Instrument Repair Technicians (NAPBIRT)

- Gives great feedback to the manufacturers about the product

What is the difference between the abundance principle and the scarcity principle?  How does this apply to music advocacy?

Abundance Principle:

• States that the market is potentially limitless, that if you want to expand your market, you must create from new areas.

• Is based on “synergy”

Scarcity Principle:

• States that there is only so much to go around, that if you want to expand your market you must take from another.

• Is based on competitive intrusion

These principles apply to music advocacy as they move away from traditional sources of advertising, while moving toward more based community strategies.

What is meant by the term “competitive intrusion”?

Is based around the scarcity principle- says that the market is finite and the only way  to get more is to take it from someone else.

What is a new issue program?  How does it work?

Is a method for releasing new music, that there is no returnability.

Who are the two primary customers for commercial audio products?

1. Installation at Venues

2. Rental and staging market

What are the two types of sales strategies related to this? (commercial audio products)

1. Installations- Pricing done as a package including equipment and installation, inventory kept at a minimum at the dealer

2. Rental Market- Perishable and Capital Goods

Who are the two primary customers for the service market?

1. Consumers- repairs and general maintenance

2. Retailer- processing rental returns, setting up new inventory, manufacturer warranty work.

What are some of the advantages and disadvantages of keeping merchandise in stock?

advantages:

• Do not lose the sale

• Avoid hassle of placing daily orders

• Better discounting

• Less shipping costs

• Fewer backorders

Disadvantages:

• Ties up cash

• Tax consequences

• Storage and space

• Obsolescence and dead inventory

• Difficult to predict size, color, brands, etc

What is meant by MAP?  Who sets this?  Who is most concerned with MAP?

MAP: Minimum Advertised Price, the manufacturers set prices, brand, retailers, and manufacturers are most concerned about MAP prices.

What are some music advocacy programs supported by NAMM and how do they work?

Sesame Street Music Experience

• Expose making music to groups of pre-school students in combination with retail stores.

Weekend Warriors

• Encourages adults to organize in rock bands playing guitar, keyboard, and drums.

New Horizon Band

• Encourages senior citizens (50+) to learn to play band instruments and organize in a band concert.

VH1 Save the Music

• Encourages the donation of musical instruments and money to support schools with no music programs.

Final Performance Band Concert:

- Encourages new band students to play an early concert to improve retention.

How has the digital printing press affected the sheet music market?

On- demand availability, limiting costs.

What is the fundamental problem with carrying sheet music?

Its fragile, not very transferable, lacks organization.

What is a stocking program?  How does it work?  How does it differ from a new issue program?

Is a library of music, has limited returnability, it differs from new issue program as it has no returnability.