Shared Flashcard Set

Details

BMG Midterm
Midterm
60
Business
Undergraduate 2
01/14/2009

Additional Business Flashcards

 


 

Cards

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
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