Details Title: BMG Midterm Description: Midterm Total Flash Cards: 60 Created: 01/14/2009 10:20:22		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Business Flashcards
Cards in this set: Term What is the formula that defines Profit? Definition Revenue - Expenses = Profit Term What question does a mission statement answer? Definition Why are you in business? Term What is a vision statement? Definition describes your view of the future of the industry or market. Term What is a values statement? Definition your code of ethics, or the operating principles that are fundamental to your business, and unlikely to change over time. Term What are the 2 strategic questions to consider before going into business? Definition What do I want to accomplish? How much am I willing to risk? Term What are 3 key elements in any music business? Definition What's the business? What's the market or target customer? How does everyone get paid? Term What 3 things should you do before going into business? Definition The market overview The feasibility or risk analysis The business plan Term In what types of entities are businesses organized for tax and legal purposes? Definition Sole proprietorship LLC Partnership Corporation Term What are the four major record labels? Definition Sony BMG EMI Universal WEA Term Who is the customer in the music business? Definition whoever pays you directly Term what are the two kinds of competition? Definition Direct and indirect Term Define Direct competition Definition similar businesses in the same product category Term Define Indirect competition Definition any product that goes after the same target customer's attention and money Term What are the 5 key aspects of business? Definition Product development Product delivery Sales and marketing Accounting and finance Management Term What are the 4 key responsibilities of management? Definition planning organizing motivating controlling Term What 3 conditions must be met before starting your own business? Definition Have a business plan Have funding to cover business and personal expenses You are comfortable taking risks Term What are 8 benefits of writing down your business plan? Definition Road Map Opportunity Management Tool Stress Management Tool Measuring stick Catalyst for your business work Competitive Weapon Fund-raising Tool Team-Building Tool Term Who can also benefit from the business plan? Definition Investors employees vendors Term What are the 3 things that a business plan describes? Definition What you are going to do How you are going to do it The consequences Term What are the 5 Chapters of a business plan? Definition Description of your company Description of products Market overview and marketing strategy Management team and organizational overview Financial summary Term What section is the largest portion of the business plan and carries the most weight with financial people and investors? Definition Market overview and marketing strategy Term How long and detailed is a business plan? Definition 15-20 pages Term What is the 6th chapter and what does it include? Definition Appendix or reference section -Includes Organizational charts, job descriptions, sample materials etc. Term What 4 key questions does a brand positioning statement answer? Definition What business are we in? Who are our customers? What makes us special? What's in it for everybody? Term What is the "Elevator Test" and what is it used for? Definition Answers, What do you do? Used for networking Term What is the biggest challenge facing any music person or music business? Definition Keeping your customers focused on you and your product Term Define Marketing Definition developing products & exposing them for sale to specific customers Term Define Sales Definition Expediting a purchase Term What are the 4 functions of marketing? Definition Planning & positioning product Communicating with target market Managing customer relationships Advertising and promotion Term What are the 4 functions of Sales? Definition Achieve Sales objectives "hit the numbers" Participating in events Managing Sales Territory Handling Administrative Tasks Term What are the 7 links in the marketing chain? Definition Product strategy Pricing Strategy Promotional Strategy Sales channel strategy & place of business Salesforce strategy End user & buyer profiles Competitive environment Term What are some examples of music industry products? Definition Record sales Live performances Music publishing merchandise business services etc Term What are the 6 phases of product life cycles? Definition Research & Development Introduction Early Growth Late growth Maturity or saturation Decline Term What are the 3 key factors that influence pricing? Definition Supply and Demand Pricing conventions & traditions Sales & marketing ability Term What are the 3 basic pricing strategies? Definition Low-cost producer Differentiation Hybrid Term What typically happens in the music industry with unrealistic pricing? Definition Can't make a living Pricing out of the market Costs get out of control Inaccurate or limiting image or reputation Term Define Branding Definition Create indelible images of product in minds of target customers Term What are the 10 promotional tools? Definition Advertising Publicity Sales literature Demos & collateral materials Direct marketing Trade events Key influencer relations Identity Items Showcase performances E-commerce Term What are 3 key questions about your promotional strategy? Definition Do I have to use all 10 tools? What can I afford? What if I can't do all of it myself? Term Who are the four main players in maximizing a music career? Definition Personal manager Business manager Attorney Agent Term How many songs should be included on a demo CD? Definition 3 or 4 Term Why is it important to have the best song first? Definition set a good first impression Term Who is the first person on the artist's "team"? Definition Lawyer or manager Term Why should an artist be cautious about getting a lawyer to shop a CD? Definition they consider it important to maintain there credibility with the record companies Term What suggestions does Passman give to screen the "sharks"? Definition Get references Consult team Look beyond sales pitch Term To what two positions in a corporation can you compare the role of a personal manager? Definition COO and GM Term What are the 7 items listed as major aspects of the managers job? Definition Helps with business decisions Creative Process Promotion & publicity Assemble management team Coordinates tour with agent Liaison with record label Buffer for outside world Term What is the typical range of commissions that a manager earns? Definition 15% to 20% Term What is the typical term of a management agreement? Definition 3-5 years Term What is an Album cycle? Definition time from commencement of record to end of promotional activities Term What is an Album cycle? Definition time from commencement of record to end of promotional activities Term What is a sunset clause? Definition limits manager's income after termination of the contract "Step's-down" over 5 years after term Term What is key man clause? Definition If person you hired, retires, dies or leaves the company, you can legally terminate contract Term What is the role of the business manager? Definition Handles financial obligations Term What credentials or licenses are required to become a business manager? Definition none, but needs to know accounting Term Why is it risky to have family members as a business manager? Definition damaging to personal relationships Term How are business managers customarily paid? Definition Paid hourly, by monthly retainer, a percent, or a combination Term What is value billing? Definition attorney spends time negotiating deals Term What is a retainer? Definition advance payment to attorney Term What are a client's options if an attorney reveals a conflict of interest? Definition hire another attorney waive conflict