)Value-Rated Marketing, by Bob Dennis
Why Should They Buy?
You're not going to get the consumer to spend rent money on your new music release. The consumer has decided to spend some money this week at the local retailer. This is part of one's "disposable income." All the rest of this week's paycheck is committed to more important things like rent, food and pocket change to buy drinks for girls at the club this weekend. There has to be a reason that your product is picked up for purchase, over the other releases on the shelf. As a "local" release you have a tremendous disadvantage of having your product right next to a national hit artist's new release.
Discounts and Adding Value
The first thing that may occur to you is to use a technique of "discounting" - making your product cost less money. This is not a good approach for a new artist because it lowers the "perceived value" of the product in the consumer's mind. People get the idea that it costs less because it's worth less. This is completely opposite to the reaction you want to get in order to sell the product. A "sale price" on an established artist works well for them, because the "value" of the music has already been established in the consumer's mind. As an artist releasing a local product you need to leave the "discounting" to the big boys - you're not yet in that league.
A better approach is by "adding value" to make your product "worth more" but charging full price for it. Time and time again I have seen this technique work like magic. It's even a technique that is commonly used by large record companies. Some examples that I have seen of effective "added value" plans for both local and national product are:
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Sixteen Original Hits
In the sixties, albums were 10 - 12 cuts or about 40 minutes of music (tops). But the company I worked for (Motown) released a series of "16 Original Big Hits, which gave about 16 extra minutes for the same price - assuring brisk sales.
The Best Of ...
Today CD's are usually 14 cuts long. You may get 15 cuts on a "Best Of.." or "Greatest His of..." releases but the added value comes in those four "previously unreleased" cuts that are included.
Journey Of The Drums
20 years ago a close friend of mine, Muruga Booker, released cassettes that were 64 minutes of music - again 50% longer than the average prerecorded cassette. His "out of the living room" company took "Journey," a new-age release, national and sold over 12,000 units.
There are countless other examples of this, including things like "artist poster enclosed," that have been used effectively to add value to the product over the years.
An Example Plan
Again, I find myself having to add value to the product I want to put out. I want a single release of "Coming Back" by Dave Newland, because I think its a hit and brings out a message that should be released to the public. Using the strategy I outlined above, I need to add value.
I pick a local retailer and talk to the owner about how my release should be. I find out that the upper price level is $6.95 and it should have 5 cuts of audio (you know, those "bonus" cuts). OK, so I am releasing a single with 5 audio cuts for $6.95. My job now is to find an added value.
During my talks with the retailer, we discuss possible displays and placement in the store to enhance sales. I'm particularly interested in how we can boost the "local product" bin sales, because this is where the product will reside in the store.
Two For One
I feel that if I can double the perceived value, I'll have the chance to get store marketing going, by my "better value" release being the one that is most-often chosen for purchase.
The "Motorcitygrown Hits" Plan
I've had the honor to produce and help release many local records over the years, some of which got significant airplay and sales. You can get an Idea of how some of these releases went by seeing my autobiographical article, "40 Years And Counting" - I have had about 8000 local records sold in my career.
Dave Newland had a solo album, "For Sale" which achieved significant gig sales. Half a decade earlier the band he was working with, "R-Gang," had a local release out with significant sales, and with one of their tunes being used on a Red Wings DVD release.
It began to occur to me that, between Dave and I, we had a real basis for a "16 Original Big 'Motorcity' Local Hits" package. Hey - a double release with 21 cuts! At first you would that that that was impossible without "pressing up" two CD's.
But if we made this greatest hits release in MP3 format on the disc, everything will fit nicely, and it becomes a true added value release. In addition I will be personal supervising the mastering of the MP3's to get the maximum sound quality in this compressed format.
So there you have the rough model of my new marketing plan, a dual product release with 21 cuts for $6.95 retail.
