Term
| what is the formula that definse profit? |
|
Definition
| revanue - expenses = profit |
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Term
| what question does a mission statement answer? |
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Definition
| the reason why you are in business. |
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|
Term
| what is a vision statement? |
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Definition
| what your view is of where the industry is headed and where you will take your business. |
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Term
| what is a values statement? |
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Definition
| it is a code of ethics or opperating principals. |
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Term
| what are the two stategic questions to consider before going into business? |
|
Definition
what do i want to acomplish?
and
what am i willing to risk |
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Term
| what are three key elemets in any music busines |
|
Definition
what the businees or product is
what your product market is
what is the revanue streem(how do people get paid) |
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Term
| what 3 things should you do before going into business |
|
Definition
market overview
phesability(risk analasys)
business plan |
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Term
| in what types of entities are businesses organized for tax and legal purposes |
|
Definition
sole propitership
partnership
llc
corporation |
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Term
| what are the four major record lables |
|
Definition
|
|
Term
| who is the customer in the music business |
|
Definition
| whoever pays you directly |
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Term
| define the two kinds of competition |
|
Definition
direct- similar businesses in the same product catagory
indirect- any product the goes after the same customers as your product. |
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Term
| what are 5 key aspects of business? |
|
Definition
producty develpoment
product delivery
sales and marketing
accounting and finnance
management |
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|
Term
| whatr are the four key responsabilities of management? |
|
Definition
planning
organizing
motivating
controlling |
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|
Term
| what 3 conditions must be met before starting your own business? |
|
Definition
business plan
funding
comfortable taking risks |
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Term
| what are 8 benefits of writting down your own business plan? |
|
Definition
road map compettative weapon
measuring stick fund-raising tool
opportunity management tool team building tool
stress management tool
catalyst for your best work |
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|
Term
| who can also benefit from a business plan? |
|
Definition
|
|
Term
| what are 3 things that a business plan describes? |
|
Definition
what your going to do
how your going to do it
the risks involved |
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|
Term
| what are the 5 chapters of a business plan? |
|
Definition
description of company
description of products
market & overview strategy
management team & organization overview
financial summary |
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|
Term
| what section is the largest portion of the business plan and carries the most weight with financial people and investors? |
|
Definition
|
|
Term
| how long and detailed is a business plan? |
|
Definition
|
|
Term
| what is the plans 6th chapter and what does it include? |
|
Definition
| appendix or refference section |
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|
Term
| what 4 key questions does a brand possitioning statement answere? |
|
Definition
what business you are in
what makes you special
who are your customers
what is in it for everyone involved |
|
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Term
| what is the elevator test and what is it used for? |
|
Definition
25 words or less to sell yourself to someone...
ued for networkiing |
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|
Term
| what is the biggest challenge facing any music person or music business? |
|
Definition
| COMPETITION FOR ATTENTION |
|
|
Term
|
Definition
| developing products and exposing them for sale to a specific customer.. |
|
|
Term
|
Definition
| expoditing the products for a certain price or price range |
|
|
Term
| what are the four functions of marketing? |
|
Definition
PLANNING AND POSSITIONING the product
managing customer relationships
communicating with the target market
advertising and presentation |
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|
Term
| what are the seven links in the marketing chain? |
|
Definition
product stratagy
pricing strategy
promotional strategy
sales channel
sales force
user and or audiance profiles
competative environment |
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|
Term
| what are some examples of music industry products |
|
Definition
merch
records
t-shirts
live performance....... |
|
|
Term
| what are the six phases of product life cycles |
|
Definition
1-research and developement
2-intro
3-early growth
4-late growth and shake out
5-maturity and saturation
6-decline |
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|
Term
| what are the three key factors that influence pricing? |
|
Definition
supply and demand
pricing conventions and traditons
sales and marketing abillity |
|
|
Term
| what are the three basic prcing statagies ? |
|
Definition
low cost product strategy
defferntation strategy
hybrid strategy |
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|
Term
| what typically happens in the music industry with unrealistic pricing? |
|
Definition
|
|
Term
|
Definition
| creation of indellible images of you and your products in the minds of your target audiance , customers, and stock holders. |
|
|
Term
| what are ten types of promotional tools ? |
|
Definition
advertising
publicity
sales literature
demo recording
direct marketing
trade events
key influence relations
identity items
collateral materials
e-commerce |
|
|
Term
| what are three key questions about your promotional strategy? |
|
Definition
what can i afford
do i have to use all ten categories
what if im not good at promotional strategy |
|
|
Term
| who are the four main players in maximising a music career? |
|
Definition
PERSONAL MANEGER
atorney
business manager |
|
|
Term
| how many songs should be included on a demo c.d. |
|
Definition
|
|
Term
| why is it important to have your best song first? |
|
Definition
|
|
Term
| who is the first person on the artist team |
|
Definition
|
|
Term
| why should an artist be cautios about getting a lawyer to shop a c.d.? |
|
Definition
credabillity
they wont really shop your c.d. unless they think that it will be lucrative.. |
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|
Term
| what sugestions does passman to screen the sharks? |
|
Definition
get refferences
fees
personality
consult team
look beyond sales pitch
who will do the work |
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|
Term
| to what two possitions in a corporation ca you compare the role of a personal maneger? |
|
Definition
|
|
Term
| what are the 7 items listed as major aspects of a managers job? |
|
Definition
helps with business decisions
creative process
promotion and publicity
assemble management team
coordinates with agent
liason with the record label
buffer for outside world |
|
|
Term
| what is the typical range of commisions that a mngr earns ? |
|
Definition
|
|
Term
| what is the typical terms of a mangement agreement? |
|
Definition
|
|
Term
|
Definition
time of commencement of recording to end of promotional responsabilities.
tours
signnings |
|
|
Term
|
Definition
limits mngs income after termination
commision "step down" over time |
|
|
Term
| what is a key man clause? |
|
Definition
| if the person you hired retires , dies , or is fired/quit, you can legally terminate the contract. |
|
|
Term
| what is the role of a business manager? |
|
Definition
| acountant and takes care of the financiaql needs of the artist |
|
|
Term
| what credentials or licenses are required for a oerson to be a business manager? |
|
Definition
|
|
Term
| why is it rishy to have a family member as your business manager? |
|
Definition
| if something goes wrong you dont want to kill your brother or dad...you dant want a ruined family relationships. |
|
|
Term
| how are business managers custmarily paid? |
|
Definition
hour
monthly retainer
percent or combination |
|
|
Term
|
Definition
| spending time negotiating deals- percent of deal basis |
|
|
Term
|
Definition
advanced payment , fees deducted
guaranteed amount every month |
|
|
Term
| what are a clintes options if an atorny reveals a conflict of interest? |
|
Definition
hire another atorney
waive conflict |
|
|
Term
| what is the role of an agent ? |
|
Definition
| finds work for the artist |
|
|
Term
| what unions may regulate agents |
|
Definition
|
|
Term
| what does franchising mean? |
|
Definition
| working for a union and abiding by their rules. |
|
|
Term
| what is the standard fee for an agent |
|
Definition
|
|
Term
| if an artist doesnt have a mngr , who does the agent report to |
|
Definition
|
|
Term
| what does a distributor due |
|
Definition
| gets the product out to the stores. |
|
|
Term
| what does a&r stand for and what do they do... |
|
Definition
| artist and repitoire - theyu find the talent and bring them to the lables . |
|
|
Term
| what does the promotions departement do? |
|
Definition
| gets the artists songs played on the radio stations |
|
|
Term
| what are the four major record destributors |
|
Definition
sony bmg
emi
warner
universal |
|
|
Term
| what is a true independant distributor? |
|
Definition
| independant distributors deal with indipendant lables they handle a large number of small lables.. |
|
|
Term
| what does the term record include? |
|
Definition
| any kind of delivery of music for consumer use.. |
|
|
Term
| what are the two meanings of master? |
|
Definition
| orriginal recording made in the studio.. recording of one particular song... |
|
|
Term
| record companies compute artists royalties based on what |
|
Definition
% of wholesale price multiply %of royalty times wholesale price |
|
|
Term
|
Definition
| free goods are given at a discounted rate and are not used to pay royalties to artist |
|
|
Term
| can retailers return unsold records to the record company |
|
Definition
|
|
Term
| what is a reserve against returns |
|
Definition
| portion of royalties witheld to cover returns |
|
|
Term
| what does liquidating the reserve mean |
|
Definition
| within 2 years of shipment royalties are paid to the artist as a reflection of the reserve |
|
|
Term
|
Definition
| taking royalties recieved and supplying it to the amount advanced to the artist |
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