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<strong>The</strong> <strong>Strategic</strong> <strong>Integration</strong> <strong>of</strong> <strong>Music</strong><br />

<strong>Br<strong>and</strong><strong>in</strong>g</strong> <strong>and</strong> <strong>its</strong> <strong>Evolution</strong> <strong>in</strong> <strong>the</strong> past 10<br />

years<br />

by K<strong>in</strong>ga Jentetics<br />

Market<strong>in</strong>g (MA) Student<br />

Corv<strong>in</strong>us University <strong>of</strong> Budapest<br />

E-­‐mail: k<strong>in</strong>ga.jentetics@gmail.com<br />

Phone: +36304303228<br />

Address: Hungary, 1131 Budapest Madarász Viktor u. 13. II/32.<br />

ABSTRACT<br />

When it comes to br<strong>and</strong>s, music reveals as a complicated area where long-­‐<br />

ma<strong>in</strong>ta<strong>in</strong>ed myths hold fast: like music is only relevant to a youth audience; music is<br />

'too subjective' to be quantifiable or converted <strong>in</strong>to metrics; music is only relevant to<br />

TV advertis<strong>in</strong>g. In my op<strong>in</strong>ion music bus<strong>in</strong>ess has to differentiate <strong>and</strong> <strong>in</strong>novate <strong>in</strong><br />

order to stay alive f<strong>in</strong>ancially which could be fostered by <strong>the</strong> phenomenon <strong>of</strong> ’music<br />

br<strong>and</strong><strong>in</strong>g’. But why is strategic <strong>in</strong>tegration <strong>of</strong> music so essential for br<strong>and</strong>s? <strong>Music</strong><br />

provides not just a personal relationship, but a long-­‐term loyal behaviour as well by<br />

<strong>of</strong>fer<strong>in</strong>g emotions, experiences, exclusivity <strong>and</strong> engagement. <strong>Music</strong> is able to<br />

differentiate <strong>the</strong> br<strong>and</strong> <strong>its</strong>elf from <strong>the</strong> competitors through develop<strong>in</strong>g a Lovemark<br />

(Roberts, 2004) <strong>and</strong> provid<strong>in</strong>g real value for all shareholders. <strong>The</strong> research is based<br />

on qualitative research methods by conduct<strong>in</strong>g <strong>in</strong>terviews with experts <strong>in</strong> <strong>the</strong> field <strong>of</strong><br />

music <strong>in</strong>dustry <strong>and</strong> music br<strong>and</strong><strong>in</strong>g, focus group <strong>in</strong>terviews with customers besides<br />

secondary research <strong>and</strong> case studies. <strong>The</strong> ma<strong>in</strong> goal <strong>of</strong> this paper is to reveal <strong>the</strong><br />

grow<strong>in</strong>g importance <strong>of</strong> music br<strong>and</strong><strong>in</strong>g from a market<strong>in</strong>g strategy po<strong>in</strong>t <strong>of</strong> view <strong>and</strong><br />

to build a practical model depict<strong>in</strong>g <strong>its</strong> value creat<strong>in</strong>g mechanism.<br />

Keywords: music br<strong>and</strong><strong>in</strong>g, music, br<strong>and</strong><strong>in</strong>g, br<strong>and</strong> equity, Lovemark, value creation,<br />

strategy


1. Introduction<br />

<strong>Music</strong> plays a crucial role <strong>in</strong> our life <strong>in</strong>tuitively – after our first heartbeat we are already<br />

attached to <strong>its</strong> enormous power. In <strong>the</strong> 20 th century a whole <strong>in</strong>dustry was developed based on<br />

<strong>the</strong> distribution <strong>of</strong> <strong>the</strong> essential media, <strong>the</strong> music, where publishers, artists <strong>and</strong> management<br />

built a media k<strong>in</strong>gdom to sell <strong>the</strong>ir cultural artefacts.<br />

But all <strong>of</strong> this is chang<strong>in</strong>g. Thanks to a variety <strong>of</strong> factors but most prom<strong>in</strong>ently <strong>the</strong> Internet,<br />

we are witness<strong>in</strong>g a radical shift <strong>in</strong> consumption <strong>of</strong> music, consequently <strong>in</strong> <strong>the</strong> bus<strong>in</strong>ess <strong>of</strong><br />

music <strong>in</strong>dustry as well. So, <strong>the</strong> question arises how best to navigate this digital <strong>and</strong> musical<br />

space <strong>and</strong> how it is possible to get up from <strong>the</strong> ‘digital coma’?<br />

Indeed, <strong>the</strong> creative <strong>in</strong>dustry, especially music <strong>and</strong> film <strong>in</strong>dustry endured from digital coma<br />

<strong>the</strong> most <strong>in</strong>tensively. <strong>The</strong>re is no general <strong>and</strong> transparent bus<strong>in</strong>ess model <strong>in</strong> practice, which<br />

could satisfy <strong>in</strong> <strong>the</strong> matter <strong>of</strong> f<strong>in</strong>ancial resources both <strong>in</strong>dustrial figures, artists <strong>and</strong> customers.<br />

Here comes <strong>the</strong> illegal download<strong>in</strong>g <strong>in</strong>to <strong>the</strong> picture, which has developed <strong>its</strong> monarchy due to<br />

<strong>the</strong> late response <strong>of</strong> digital revolution <strong>in</strong> <strong>the</strong> music <strong>in</strong>dustry.<br />

In present, music is everywhere around us: we can simply carry it on different devices, so we<br />

do not have to feel what it means to be ‘musicless’. <strong>Music</strong> is universal. It can be experienced<br />

<strong>in</strong> thous<strong>and</strong>s <strong>of</strong> different ways, through numerous means, anywhere on <strong>the</strong> planet. It can<br />

generate hundreds <strong>of</strong> emotions, rais<strong>in</strong>g listeners to a euphoric status or push<strong>in</strong>g <strong>the</strong>m <strong>in</strong>to<br />

ab<strong>and</strong>onment. In <strong>the</strong> words <strong>of</strong> sociologist Dr. Simon Frith, “<strong>Music</strong> is what makes us human.”<br />

(Frith, 2007)<br />

When it comes to br<strong>and</strong>s, music reveals as a complicated area where long-ma<strong>in</strong>ta<strong>in</strong>ed myths<br />

hold fast: like music is only relevant to a youth audience; music is 'too subjective' to be<br />

quantifiable or converted <strong>in</strong>to metrics; music is only relevant to TV advertis<strong>in</strong>g <strong>in</strong> <strong>the</strong> form <strong>of</strong><br />

background music. However, <strong>in</strong> Kotler’s (2010) Market<strong>in</strong>g 3.0 model a new dimension comes<br />

<strong>in</strong>to <strong>the</strong> literature <strong>of</strong> market<strong>in</strong>g: <strong>the</strong> spiritual one, where music has a crucial role <strong>in</strong> forms <strong>of</strong><br />

talent management <strong>and</strong> cultural mission.<br />

In my op<strong>in</strong>ion music bus<strong>in</strong>ess has to differentiate <strong>and</strong> <strong>in</strong>novate <strong>in</strong> order to stay alive<br />

f<strong>in</strong>ancially which could be fostered by <strong>the</strong> phenomenon <strong>of</strong> ’music br<strong>and</strong><strong>in</strong>g’. <strong>Music</strong> br<strong>and</strong><strong>in</strong>g<br />

is a freshly established br<strong>and</strong><strong>in</strong>g strategy, which is applied <strong>in</strong> global <strong>and</strong> local plans as well<br />

accord<strong>in</strong>g to several effective case studies <strong>in</strong> <strong>the</strong> mult<strong>in</strong>ational environment. In <strong>the</strong> age <strong>of</strong><br />

chang<strong>in</strong>g consumer behaviour, music br<strong>and</strong><strong>in</strong>g enables <strong>the</strong> emotional engagement <strong>of</strong><br />

1


customers by awak<strong>in</strong>g associations, generat<strong>in</strong>g emotions <strong>and</strong> <strong>in</strong>creas<strong>in</strong>g <strong>the</strong> sympathy towards<br />

different br<strong>and</strong>s. In this paper I strongly dist<strong>in</strong>guish between <strong>the</strong> broad <strong>and</strong> narrow def<strong>in</strong>ition<br />

<strong>of</strong> music br<strong>and</strong><strong>in</strong>g: <strong>the</strong> <strong>in</strong>tegration <strong>of</strong> music is <strong>in</strong> my underst<strong>and</strong><strong>in</strong>g determ<strong>in</strong>ed by <strong>the</strong> wide<br />

approach, <strong>in</strong>volv<strong>in</strong>g <strong>the</strong> strategic long-term dimension. However, as an <strong>in</strong>novative br<strong>and</strong><strong>in</strong>g<br />

strategy tool, music br<strong>and</strong><strong>in</strong>g can <strong>of</strong>fer a lucrative solution by creat<strong>in</strong>g genu<strong>in</strong>e engagement<br />

between customers <strong>and</strong> br<strong>and</strong>s.<br />

But why is strategic <strong>in</strong>tegration <strong>of</strong> music so essential for br<strong>and</strong>s? <strong>Music</strong> provides not just a<br />

personal relationship, but a long-term loyal behaviour as well by <strong>of</strong>fer<strong>in</strong>g emotions,<br />

experiences, exclusivity <strong>and</strong> engagement. Active community <strong>and</strong> fan build<strong>in</strong>g is encouraged<br />

trough music br<strong>and</strong><strong>in</strong>g; fur<strong>the</strong>rmore, creativity enhances <strong>the</strong> <strong>in</strong>vention <strong>of</strong> new relevant<br />

contents, applications. <strong>Music</strong> is able to differentiate <strong>the</strong> br<strong>and</strong> <strong>its</strong>elf from competitors through<br />

develop<strong>in</strong>g a Lovemark (Roberts, 2004) <strong>and</strong> provid<strong>in</strong>g real value for all shareholders.<br />

S<strong>in</strong>ce this area is highly untouched by academic studies <strong>the</strong> methodology <strong>of</strong> research is based<br />

on qualitative research methods by conduct<strong>in</strong>g <strong>in</strong>terviews with practitioners <strong>in</strong> <strong>the</strong> field <strong>of</strong><br />

music <strong>in</strong>dustry <strong>and</strong> music br<strong>and</strong><strong>in</strong>g, focus group <strong>in</strong>terviews with customers besides secondary<br />

research <strong>and</strong> case studies. <strong>The</strong> ma<strong>in</strong> goal <strong>of</strong> this paper is to reveal <strong>the</strong> grow<strong>in</strong>g importance <strong>of</strong><br />

music br<strong>and</strong><strong>in</strong>g from a market<strong>in</strong>g strategy po<strong>in</strong>t <strong>of</strong> view <strong>and</strong> to build a practical model<br />

depict<strong>in</strong>g <strong>the</strong> strategic <strong>in</strong>tegration <strong>of</strong> music <strong>and</strong> <strong>its</strong> value creat<strong>in</strong>g mechanism.<br />

2. Literature Background<br />

<strong>Br<strong>and</strong><strong>in</strong>g</strong> has <strong>its</strong> historical development through <strong>the</strong> last decades, which have different<br />

perspectives <strong>and</strong> it heads us to <strong>the</strong> def<strong>in</strong>ition <strong>of</strong> Lovemark (Roberts, 2004). However, through<br />

br<strong>and</strong><strong>in</strong>g several values are enabled which are <strong>the</strong> basis <strong>of</strong> value creation <strong>of</strong> music br<strong>and</strong><strong>in</strong>g as<br />

well. But what is music br<strong>and</strong><strong>in</strong>g <strong>and</strong> how can it create value? In <strong>the</strong> follow<strong>in</strong>g I will depict<br />

<strong>the</strong> concepts <strong>of</strong> br<strong>and</strong><strong>in</strong>g, br<strong>and</strong> equity build<strong>in</strong>g <strong>and</strong> music br<strong>and</strong><strong>in</strong>g <strong>in</strong> order to place <strong>the</strong> topic<br />

<strong>in</strong> a <strong>the</strong>oretical approach.<br />

2.1. <strong>Br<strong>and</strong><strong>in</strong>g</strong> – from product to Lovemark<br />

<strong>The</strong> def<strong>in</strong>ition <strong>of</strong> br<strong>and</strong> <strong>and</strong> product is mixed <strong>in</strong> our common language, so it is necessary to<br />

draw a l<strong>in</strong>e between <strong>the</strong>m from an academic po<strong>in</strong>t <strong>of</strong> view. Accord<strong>in</strong>g to Kotler (1998, p. 40)<br />

„people satisfy <strong>the</strong>ir needs through products. So a product can be anyth<strong>in</strong>g which is suitable<br />

for satisfaction <strong>of</strong> <strong>the</strong> given need.” Accord<strong>in</strong>g to Bauer, Berács (1998, p. 186) product is <strong>the</strong><br />

sum <strong>of</strong> physical, aes<strong>the</strong>tical <strong>and</strong> symbolic characteristics with <strong>the</strong> objective to satisfy<br />

2


customers’ needs. This <strong>the</strong>ory suggests <strong>the</strong> def<strong>in</strong>ition <strong>of</strong> br<strong>and</strong> which is formulated by Keller<br />

as <strong>the</strong> follow<strong>in</strong>g: eventually br<strong>and</strong> is a product that has differentiat<strong>in</strong>g characteristics,<br />

dimensions from o<strong>the</strong>r products satisfy<strong>in</strong>g <strong>the</strong> same customers’ needs. (Keller, 1998. p. 4)<br />

Kapferer (1997, p. 30) states that a br<strong>and</strong> has several functions for <strong>its</strong> customers. A br<strong>and</strong><br />

helps to identify, recognize, besides differentiate <strong>the</strong> product <strong>in</strong> customers’ m<strong>in</strong>d-set,<br />

moreover <strong>in</strong> rout<strong>in</strong>e purchases user spares time <strong>and</strong> energy by <strong>the</strong> shorter decision mak<strong>in</strong>g<br />

process. A br<strong>and</strong> is a guarantee <strong>its</strong>elf for quality, meanwhile it confirms <strong>the</strong> self-concept<br />

reflect<strong>in</strong>g <strong>the</strong> wish image <strong>of</strong> a reference group. Br<strong>and</strong>s are able to create engagement on a<br />

long-term basis, so it satisfies <strong>its</strong> customers by avoid<strong>in</strong>g <strong>the</strong> phenomenon <strong>of</strong> cognitive<br />

dissonance.<br />

For a company br<strong>and</strong>s <strong>of</strong>fer crucial benef<strong>its</strong> <strong>in</strong> <strong>the</strong> form <strong>of</strong> <strong>in</strong>creas<strong>in</strong>g loyalty. A br<strong>and</strong> is able<br />

to compete with products satisfy<strong>in</strong>g <strong>the</strong> same needs, but it is less sensitive for economic<br />

imbalances, when consumer price elasticity is decreas<strong>in</strong>g. Market<strong>in</strong>g communication will<br />

have a unified image through br<strong>and</strong> management. (Keller, 1998. p.53)<br />

Achenbaum (1993) applies a totally different underst<strong>and</strong><strong>in</strong>g <strong>of</strong> def<strong>in</strong>ition <strong>of</strong> br<strong>and</strong>s. In his<br />

esteem what truly differentiates a br<strong>and</strong> from <strong>the</strong> unbr<strong>and</strong>ed mass products <strong>and</strong> what gives a<br />

unique value for it, is basically <strong>the</strong> sum <strong>of</strong> consumer feel<strong>in</strong>gs <strong>and</strong> senses about <strong>the</strong> product’s<br />

features, br<strong>and</strong> name <strong>and</strong> mean<strong>in</strong>g <strong>its</strong>elf, moreover <strong>the</strong> associated company as well.<br />

(Achenbaum, 1993)<br />

Achenbaum’s approach is developed fur<strong>the</strong>r <strong>in</strong> <strong>the</strong> concept <strong>of</strong> Lovemarks (Roberts, 2004).<br />

Lovemarks are mostly focus<strong>in</strong>g on relationships <strong>and</strong> not on <strong>the</strong> fact whe<strong>the</strong>r <strong>the</strong> br<strong>and</strong> is well<br />

known by build<strong>in</strong>g a likable personality, which builds a personal l<strong>in</strong>kage with customers by<br />

generat<strong>in</strong>g emotions on a long-term basis. Thus, personal experiences are given to <strong>the</strong><br />

customers; meanwhile br<strong>and</strong> stories are fuelled with real content, which uses not just narrative<br />

style to make <strong>the</strong> story remarkable. <strong>The</strong>se stories are usually enhanced by mystery mediat<strong>in</strong>g<br />

spiritual values for customers applied by th<strong>in</strong>k tank companies.<br />

In my op<strong>in</strong>ion <strong>in</strong> order to differentiate a company <strong>its</strong>elf it is necessary to apply <strong>the</strong> approach<br />

<strong>of</strong> Lovemark, so a new generation <strong>of</strong> br<strong>and</strong>s are evolv<strong>in</strong>g through emotional features <strong>and</strong><br />

emotional br<strong>and</strong><strong>in</strong>g. Lovemarks are icons <strong>in</strong> my underst<strong>and</strong><strong>in</strong>g tell<strong>in</strong>g a unique story <strong>in</strong> order<br />

to build a unique <strong>and</strong> long-term relationship with <strong>its</strong> customers.<br />

3


2.2. Br<strong>and</strong> Equity Build<strong>in</strong>g<br />

By <strong>the</strong> def<strong>in</strong>ition <strong>of</strong> br<strong>and</strong> equity several aspects have to be taken <strong>in</strong>to account, s<strong>in</strong>ce <strong>the</strong><br />

process <strong>of</strong> br<strong>and</strong> value creation is especially complex conta<strong>in</strong><strong>in</strong>g different f<strong>in</strong>ancial <strong>and</strong><br />

account<strong>in</strong>g <strong>in</strong>dexes as well. In this paper I will ignore <strong>the</strong> f<strong>in</strong>ancial dimension <strong>of</strong> br<strong>and</strong> value<br />

<strong>in</strong> absence <strong>of</strong> <strong>of</strong>ficial quantifiable data. Thus, br<strong>and</strong> equity is valued from different<br />

perspectives from which I will demonstrate a few <strong>in</strong> <strong>the</strong> follow<strong>in</strong>g.<br />

Accord<strong>in</strong>g to <strong>the</strong> f<strong>in</strong>ancial dimension <strong>in</strong> Simon <strong>and</strong> Sullivan’s op<strong>in</strong>ion (1993, p. 29) br<strong>and</strong><br />

equity may be def<strong>in</strong>ed as <strong>the</strong> <strong>in</strong>cremental cash flow which generates extra pr<strong>of</strong>it compared to<br />

<strong>the</strong> unbr<strong>and</strong>ed products <strong>and</strong> services. Never<strong>the</strong>less, Lassar, Mittal <strong>and</strong> Sharma (1995) suggest<br />

that consumer br<strong>and</strong> equity is ano<strong>the</strong>r reasonable dimension that can be dist<strong>in</strong>guished through<br />

five dimensions: appearance, value, social image, trustworth<strong>in</strong>ess <strong>and</strong> engagement.<br />

Aaker (1996, p. 9) differentiates consumer br<strong>and</strong> equity through o<strong>the</strong>r dimensions, namely:<br />

br<strong>and</strong> loyalty, br<strong>and</strong> awareness, perceived quality, br<strong>and</strong> associations <strong>and</strong> benef<strong>its</strong> to br<strong>and</strong><br />

property. Br<strong>and</strong> loyalty helps <strong>the</strong> company to work effectively on lower cost levels,<br />

meanwhile br<strong>and</strong> awareness supports <strong>the</strong> improvement <strong>of</strong> a reputation <strong>in</strong> m<strong>in</strong>ds <strong>of</strong> <strong>the</strong><br />

population, s<strong>in</strong>ce people have positive attitudes towards well-known products because <strong>of</strong> <strong>the</strong><br />

risk-avoidance behaviour. (Aaker – Joachimsthaler, 2000, p. 17) Perceived quality is <strong>the</strong> most<br />

critical po<strong>in</strong>t, because it gives <strong>the</strong> item <strong>of</strong> differentiation, diversification <strong>and</strong> purchas<strong>in</strong>g as<br />

well. Fur<strong>the</strong>rmore, br<strong>and</strong> associations are able to manipulate customers by generat<strong>in</strong>g positive<br />

attitudes towards <strong>the</strong> company or <strong>the</strong> product, as long as <strong>the</strong> benef<strong>its</strong> to br<strong>and</strong> property build a<br />

competitive advantage on <strong>the</strong> market.<br />

Br<strong>and</strong> equity is demonstrated <strong>in</strong> different models <strong>in</strong> market<strong>in</strong>g <strong>and</strong> management literature. For<br />

<strong>in</strong>stance, Keller (2000) developed <strong>the</strong> customer-oriented br<strong>and</strong> equity pyramid that shows <strong>the</strong><br />

added values (ei<strong>the</strong>r <strong>in</strong>dividual or organizational) by enhanc<strong>in</strong>g <strong>the</strong> basic needs (ei<strong>the</strong>r<br />

physical or psychological) <strong>of</strong> customers have to be satisfied, <strong>the</strong> ma<strong>in</strong> emotions associated<br />

towards <strong>the</strong> br<strong>and</strong> <strong>and</strong> <strong>the</strong> <strong>in</strong>tensive relationship between <strong>the</strong> br<strong>and</strong> <strong>and</strong> <strong>the</strong> company. <strong>The</strong><br />

start<strong>in</strong>g po<strong>in</strong>t <strong>of</strong> <strong>the</strong> model is br<strong>and</strong> awareness <strong>and</strong> br<strong>and</strong> image embrac<strong>in</strong>g all fields <strong>of</strong> unique<br />

associations, <strong>in</strong>formation <strong>and</strong> visualization <strong>of</strong> <strong>the</strong> product or service. Personal experiences <strong>and</strong><br />

word-<strong>of</strong>-mouth market<strong>in</strong>g are more essential accord<strong>in</strong>g to this model than o<strong>the</strong>r market<strong>in</strong>g<br />

activities. (Keller, 2003, p. 70) So <strong>in</strong> Keller’s model emotions, op<strong>in</strong>ions play a crucial role,<br />

which is respectable for value creation <strong>in</strong> music br<strong>and</strong><strong>in</strong>g as well.<br />

4


Davis <strong>and</strong> Dunn (2002) depicted <strong>in</strong> <strong>the</strong> br<strong>and</strong> equity pyramid <strong>the</strong> ma<strong>in</strong> <strong>in</strong>gredients <strong>of</strong> <strong>the</strong><br />

br<strong>and</strong>. First <strong>of</strong> all, <strong>the</strong> generic characteristics like price, functional benef<strong>its</strong> improve <strong>the</strong> br<strong>and</strong><br />

value. <strong>The</strong> bottom <strong>of</strong> <strong>the</strong> pyramid is easy to copy, so it is not <strong>the</strong> most unique <strong>and</strong> powerful<br />

part from <strong>the</strong> br<strong>and</strong>’s po<strong>in</strong>t <strong>of</strong> view. On <strong>the</strong> top <strong>of</strong> <strong>the</strong> pyramid emotional <strong>and</strong> self-expressive<br />

characteristics are difficult to copy through engagement between customers <strong>and</strong> products by<br />

def<strong>in</strong><strong>in</strong>g personality, reference group <strong>and</strong> status <strong>of</strong> <strong>the</strong> <strong>in</strong>dividual <strong>in</strong> a community. A good<br />

example for that is Nike runn<strong>in</strong>g shoes: customers purchase <strong>the</strong> lifestyle accompanied by a<br />

cross-br<strong>and</strong>ed iPod enjoy<strong>in</strong>g freedom <strong>and</strong> fresh air <strong>in</strong> a comfortable <strong>and</strong> secure way by<br />

listen<strong>in</strong>g to <strong>the</strong>ir favourite music.<br />

Dur<strong>in</strong>g this paper I will apply <strong>the</strong> different perspectives <strong>of</strong> br<strong>and</strong> equity build<strong>in</strong>g through<br />

music br<strong>and</strong><strong>in</strong>g, syn<strong>the</strong>sis<strong>in</strong>g <strong>the</strong>m with <strong>the</strong> results <strong>of</strong> primary research <strong>in</strong> Chapter 6.<br />

2.3. <strong>Music</strong> <strong>Br<strong>and</strong><strong>in</strong>g</strong><br />

<strong>The</strong> def<strong>in</strong>ition <strong>of</strong> music br<strong>and</strong><strong>in</strong>g is necessary, s<strong>in</strong>ce we can associate from <strong>the</strong> expression to<br />

different dimensions <strong>and</strong> concepts. Relevant literature has been found only among<br />

practitioners, so <strong>in</strong> <strong>the</strong> follow<strong>in</strong>g I will focus on depict<strong>in</strong>g my underst<strong>and</strong><strong>in</strong>g apply<strong>in</strong>g <strong>the</strong><br />

market<strong>in</strong>g gurus’ op<strong>in</strong>ions.<br />

<strong>Music</strong> represents <strong>the</strong> design function <strong>of</strong> music <strong>in</strong> <strong>the</strong> market<strong>in</strong>g communication <strong>of</strong> a company<br />

accord<strong>in</strong>g <strong>the</strong> narrow aspect by be<strong>in</strong>g applied as background music <strong>in</strong> commercials, signals or<br />

<strong>in</strong> store music. In my op<strong>in</strong>ion music is just a support<strong>in</strong>g function accord<strong>in</strong>g to <strong>the</strong> narrow<br />

dimension that has only a design function, not a strategic focus. Consequently, artists are<br />

chosen for br<strong>and</strong> promotion usually by personal preferences, not after conscious <strong>and</strong> complex<br />

decision-mak<strong>in</strong>g process. As a disadvantage <strong>the</strong> br<strong>and</strong> apply<strong>in</strong>g music cannot reach <strong>its</strong> target<br />

group(s) <strong>in</strong> <strong>the</strong> planned direction <strong>and</strong> volume, so usually unconscious usage <strong>of</strong> music<br />

br<strong>and</strong><strong>in</strong>g will result <strong>in</strong> unsuccessful market<strong>in</strong>g campaigns.<br />

However, I will apply <strong>the</strong> strategic po<strong>in</strong>t <strong>of</strong> view <strong>in</strong> this paper, which <strong>in</strong>cludes <strong>the</strong> broader<br />

approach putt<strong>in</strong>g music <strong>in</strong>to <strong>the</strong> centre <strong>of</strong> br<strong>and</strong><strong>in</strong>g strategy. In this def<strong>in</strong>ition music br<strong>and</strong><strong>in</strong>g<br />

means not just advertis<strong>in</strong>g songs or signals, but builds a competitive advantage from <strong>the</strong><br />

symbol <strong>of</strong> <strong>the</strong> artist. In this approach music embodies all strategic elements function<strong>in</strong>g as a<br />

centred one, so <strong>the</strong> music pr<strong>of</strong>ile is revealed dur<strong>in</strong>g <strong>the</strong> onl<strong>in</strong>e <strong>and</strong> <strong>of</strong>fl<strong>in</strong>e strategy <strong>and</strong> <strong>the</strong><br />

strategic concept <strong>of</strong> event market<strong>in</strong>g.<br />

In addition, music br<strong>and</strong><strong>in</strong>g helps br<strong>and</strong>s to identify <strong>and</strong> differentiate <strong>the</strong>mselves, moreover to<br />

go beyond conventional market<strong>in</strong>g <strong>and</strong> br<strong>and</strong> concepts. <strong>Music</strong> establishes loyalty through<br />

5


exclusive contents <strong>of</strong>fer<strong>in</strong>g real experiences via music concerts. <strong>The</strong> personality <strong>of</strong> music<br />

icons is essential <strong>in</strong> <strong>the</strong> engagement process <strong>of</strong> customers for <strong>the</strong> br<strong>and</strong> <strong>and</strong> b<strong>and</strong> <strong>its</strong>elf, which<br />

reveals as an <strong>in</strong>tangible asset nowadays <strong>in</strong> f<strong>in</strong>ancial evaluation <strong>of</strong> br<strong>and</strong>s as well.<br />

3. <strong>Strategic</strong> <strong>in</strong>tegration <strong>of</strong> music br<strong>and</strong><strong>in</strong>g<br />

<strong>Music</strong> is able to reach <strong>its</strong> fans through different channels: digital platforms <strong>in</strong>clud<strong>in</strong>g all<br />

onl<strong>in</strong>e service (social media sites, blogs, onl<strong>in</strong>e music platforms), event platform <strong>in</strong>clud<strong>in</strong>g<br />

concerts, fashion shows, holistic events exploit<strong>in</strong>g <strong>the</strong> power <strong>of</strong> life performances, <strong>and</strong> even<br />

<strong>the</strong> artist <strong>its</strong>elf appears as a genu<strong>in</strong>e platform whose personality tra<strong>its</strong> <strong>in</strong>fluence <strong>the</strong><br />

company’s personality <strong>and</strong> reputation as well. But how can music communicate through <strong>the</strong>se<br />

channels? What strategic approach can be stitched <strong>in</strong>to <strong>the</strong> dimension <strong>of</strong> music br<strong>and</strong><strong>in</strong>g? This<br />

chapter will give <strong>the</strong> answer by depict<strong>in</strong>g <strong>the</strong> 4 Es’ model <strong>of</strong> music br<strong>and</strong><strong>in</strong>g (Heartbeats,<br />

2009) <strong>and</strong> different cooperation strategies <strong>of</strong> musicians <strong>and</strong> br<strong>and</strong>s accord<strong>in</strong>g to case studies<br />

based on Heartbeats (2009).<br />

3.1. <strong>Music</strong> is able to <strong>of</strong>fer customers…<br />

As <strong>in</strong> every field <strong>of</strong> market<strong>in</strong>g sciences <strong>the</strong>re are several practices <strong>in</strong> <strong>the</strong> area <strong>of</strong> music<br />

br<strong>and</strong><strong>in</strong>g as well that evolve different strategic pr<strong>in</strong>ciples. Experts improved <strong>the</strong> conventional<br />

value system <strong>of</strong> 4 Ps related to luxury (Greenhill, 2011) <strong>and</strong> music br<strong>and</strong><strong>in</strong>g. Accord<strong>in</strong>g to <strong>the</strong><br />

literature <strong>in</strong>stead <strong>of</strong> 4 Ps, 4 Es describe <strong>the</strong> music br<strong>and</strong><strong>in</strong>g pr<strong>in</strong>ciples. (Heartbeats, 2009b) In<br />

<strong>the</strong> follow<strong>in</strong>g I demonstrate four different topics suggest<strong>in</strong>g that <strong>the</strong> ma<strong>in</strong> objective <strong>of</strong> today’s<br />

br<strong>and</strong><strong>in</strong>g for companies is to form an emotional <strong>and</strong> exclusive br<strong>and</strong> <strong>of</strong>fer<strong>in</strong>g experiences for<br />

customers by different engagement activities <strong>of</strong> <strong>the</strong> target audience.<br />

3.1.1. … Emotions<br />

In a purchas<strong>in</strong>g decision consumers can apply different assumptions based on rational facts by<br />

analys<strong>in</strong>g prices or product features; on cultural aspect favour<strong>in</strong>g <strong>the</strong> products <strong>of</strong> a given<br />

country; or on emotional feel<strong>in</strong>gs where associations play <strong>the</strong> most important role us<strong>in</strong>g a<br />

slogan, a product design or a music connected to a br<strong>and</strong>. Consumer behaviour suggests that<br />

<strong>the</strong> formerly most usual rational decision-mak<strong>in</strong>g is suppressed through impulsive buy<strong>in</strong>g <strong>and</strong><br />

emotional decisions nowadays by demonstrat<strong>in</strong>g a real connection between br<strong>and</strong>s <strong>and</strong><br />

customers.<br />

Emotions are generated when an event is evaluated relevant ei<strong>the</strong>r <strong>in</strong> a positive way by<br />

help<strong>in</strong>g to <strong>the</strong> user or <strong>in</strong> a negative way when it blocks <strong>the</strong> customer. So emotions are <strong>the</strong><br />

6


phenomenon <strong>of</strong> a mental situation, which is accompanied by different gestures, expressions<br />

<strong>and</strong> activities. (Oatley - Jenk<strong>in</strong>s, 2001)<br />

In Gobé’s view (2001) <strong>the</strong> emotional aspect <strong>of</strong> br<strong>and</strong>s is <strong>the</strong> ma<strong>in</strong> <strong>in</strong>dicator <strong>of</strong> differentiation<br />

<strong>in</strong> <strong>the</strong> m<strong>in</strong>ds <strong>of</strong> customer. People purchase emotional experiences nowadays through iconic<br />

br<strong>and</strong>s, so br<strong>and</strong>s should exploit <strong>the</strong> Lovemark-effect <strong>in</strong> order to engage customers <strong>in</strong> a long<br />

term. Accord<strong>in</strong>g to Gobé (2001) sensual experiences should be enhanced, not just emotional<br />

ones. Imag<strong>in</strong>ation has to be used for design<strong>in</strong>g product development, packag<strong>in</strong>g, <strong>the</strong> store or<br />

web pages, meanwhile a long-term vision has to be established for real success. Through <strong>the</strong><br />

personal relationship between br<strong>and</strong>s <strong>and</strong> customers emotional satisfaction is evolved <strong>in</strong><br />

consumers.<br />

<strong>The</strong> decision process may not be depicted as an easy one, s<strong>in</strong>ce several factors reveal due to<br />

<strong>the</strong> emotional decision mak<strong>in</strong>g process. <strong>The</strong> most important decisions <strong>of</strong> our lives are made<br />

based on an emotional level: we chose friendships, pr<strong>of</strong>ession or our partner with a high<br />

<strong>in</strong>volvement <strong>of</strong> our emotions. Emotions are highly subjective, irrational or impulsive when we<br />

buy a chocolate at <strong>the</strong> cashier because we are seduced by <strong>its</strong> package <strong>and</strong> <strong>the</strong> urge <strong>of</strong> <strong>the</strong><br />

impulsive emotion.<br />

However, nowadays we are engaged to a br<strong>and</strong> on an emotional level ra<strong>the</strong>r than on a rational<br />

one. Br<strong>and</strong>s appear as Lovemarks (Roberts, 2004), which are not anymore unreachable<br />

subjects, but ‘friends’ who are try<strong>in</strong>g to care about our fears, happ<strong>in</strong>ess <strong>and</strong> urges.<br />

Fur<strong>the</strong>rmore, differentiation is enabled by music br<strong>and</strong><strong>in</strong>g when people associate from <strong>the</strong><br />

music to a given br<strong>and</strong> or conversely. Never<strong>the</strong>less, today’s competitive advantage for<br />

corporates is <strong>the</strong> phenomenon <strong>of</strong> emotional commitment, s<strong>in</strong>ce emotions are not easy to copy<br />

or produce <strong>in</strong> a cheaper way.<br />

3.1.2. … Engagement<br />

Engagement is a hot topic nowadays when advertis<strong>in</strong>g avoidance revealed as a consumer<br />

behaviour trend. Accord<strong>in</strong>g to <strong>the</strong> research <strong>of</strong> SIFO Institute (2008) it was concluded that<br />

75% <strong>of</strong> people avoid advertis<strong>in</strong>g actively <strong>in</strong>dependent on whe<strong>the</strong>r it is broadcasted <strong>in</strong><br />

television, on <strong>the</strong> Internet or <strong>in</strong> <strong>the</strong> radio.<br />

However, advertis<strong>in</strong>g avoidance is still a crucial phenomenon on social media sites as well.<br />

Kelly, Kerr <strong>and</strong> Drennan (2010) analysed how social media sites are endangered by<br />

advertis<strong>in</strong>g avoidance, moreover Cho <strong>and</strong> Cheon's (2004) built a model how onl<strong>in</strong>e<br />

advertis<strong>in</strong>g was avoided because it was disruptive or cluttered. <strong>The</strong> results <strong>of</strong> <strong>the</strong>se research<br />

7


show that previous negative experiences or stories <strong>of</strong> negative experiences had some impact<br />

on advertis<strong>in</strong>g avoidance. However, important reasons were uncovered for advertis<strong>in</strong>g<br />

avoidance <strong>in</strong> onl<strong>in</strong>e social network sites, such as relevance <strong>and</strong> credibility. Advertis<strong>in</strong>g<br />

avoidance is mostly due to scepticism accord<strong>in</strong>g to Obermiller, Spangenberg <strong>and</strong> MacLachlan<br />

(2005), whose study suggests that consumers are not motivated to process <strong>in</strong>formation when<br />

<strong>the</strong>y are sceptical <strong>of</strong> <strong>the</strong> message. Evidence <strong>in</strong> Kelly’s study showed that social network<strong>in</strong>g<br />

sites represent an "anyth<strong>in</strong>g goes" communication channel where little control occurs; anyone<br />

can post anyth<strong>in</strong>g, discredit<strong>in</strong>g <strong>the</strong> platform <strong>of</strong> social media sites.<br />

In order to broadcast <strong>the</strong> message to <strong>the</strong> target audience <strong>the</strong> most effective way is to establish<br />

engagement between <strong>in</strong>dividuals <strong>and</strong> corporates. <strong>The</strong> power <strong>of</strong> word-<strong>of</strong>-mouth <strong>and</strong> social<br />

media sites are able to deliver those messages as a virus, but despite <strong>its</strong> eas<strong>in</strong>ess <strong>and</strong><br />

effectiveness <strong>the</strong> message <strong>and</strong> <strong>the</strong> activity has to be revised from <strong>the</strong> credibility <strong>and</strong> relevance<br />

po<strong>in</strong>t <strong>of</strong> view. O<strong>the</strong>rwise, <strong>the</strong> spam effect may happen to evolve, which will br<strong>in</strong>g not just a<br />

company’s message, but also <strong>the</strong> company <strong>its</strong>elf <strong>in</strong>to <strong>the</strong> virtuous cycle <strong>of</strong> avoidance <strong>and</strong><br />

ignorance.<br />

How is a company <strong>the</strong>n able to create such an engagement between customers <strong>and</strong> corporate?<br />

<strong>The</strong> firm has to <strong>of</strong>fer an exclusive <strong>and</strong> relevant value for consumers, which may have an<br />

impact on <strong>the</strong>ir social lives as well. That is why music br<strong>and</strong><strong>in</strong>g can be a helpful strategic tool,<br />

s<strong>in</strong>ce accord<strong>in</strong>g to <strong>the</strong> study <strong>of</strong> Millward Brown (Br<strong>and</strong>amp, 2009) music is <strong>the</strong> medium,<br />

which is more important <strong>in</strong> people’s lives than Internet or television. In ano<strong>the</strong>r study by<br />

Enterta<strong>in</strong>ment Media Research (2009) it was concluded that through music content people<br />

could establish a dialog with <strong>the</strong>ir friends <strong>and</strong> acqua<strong>in</strong>tances ei<strong>the</strong>r <strong>in</strong> an onl<strong>in</strong>e or <strong>in</strong> an<br />

<strong>of</strong>fl<strong>in</strong>e environment.<br />

<strong>The</strong> best practice apply<strong>in</strong>g music <strong>in</strong> <strong>the</strong> market<strong>in</strong>g mix is <strong>the</strong> Coca-Cola Company. <strong>The</strong>re are<br />

several digital or <strong>of</strong>fl<strong>in</strong>e platforms developed by <strong>the</strong> corporation, which are focus<strong>in</strong>g on<br />

enhanc<strong>in</strong>g a conversation between customers as well. In Hungary Coke Club is <strong>the</strong> musical<br />

place platform <strong>of</strong> Coca-Cola where social media <strong>and</strong> music br<strong>and</strong><strong>in</strong>g played a crucial role.<br />

Several exclusive content was <strong>of</strong>fered for customers <strong>in</strong> forms <strong>of</strong> virtual games, news<br />

connected to music <strong>and</strong> social media activities, moreover free concerts <strong>and</strong> DJ performances.<br />

3.1.3. … Experiences<br />

P<strong>in</strong>e <strong>and</strong> Gilmore (1999) expressed <strong>the</strong> fact that companies do sell not just products <strong>and</strong><br />

services anymore, but experiences connected to br<strong>and</strong>s. In <strong>the</strong> experience economy people no<br />

8


longer buy a service, but an experience, which provides memories or sensations engag<strong>in</strong>g<br />

<strong>in</strong>dividuals <strong>in</strong> a personal way. Some bus<strong>in</strong>ess management specialists have identified<br />

“Experience” as a new source <strong>of</strong> value, dist<strong>in</strong>ct from services. For <strong>in</strong>stance, <strong>the</strong> report <strong>of</strong> best<br />

br<strong>and</strong>s by Interbr<strong>and</strong> <strong>in</strong> 2009 enhanced <strong>the</strong> dimension <strong>of</strong> br<strong>and</strong> experiences by evaluat<strong>in</strong>g<br />

br<strong>and</strong> values.<br />

Lash <strong>and</strong> Urry (1994) showed “what is <strong>in</strong>creas<strong>in</strong>gly produced are not material objects, but<br />

signs which can be content <strong>and</strong> <strong>in</strong>formational goods or <strong>the</strong>y can have primarily an expressive<br />

(aes<strong>the</strong>tic, symbolic or social) content (post modern goods). This ability is a strong feature <strong>of</strong><br />

culture-based creativity as it is capable <strong>of</strong> generat<strong>in</strong>g emotions, values <strong>and</strong> vision.“ Thus,<br />

artistic creativity will become a key driver <strong>of</strong> <strong>the</strong> experience <strong>in</strong>dustry – whe<strong>the</strong>r it comes from<br />

tourism, enterta<strong>in</strong>ment or <strong>the</strong> arts.<br />

In <strong>the</strong> digital age people search for credibility ei<strong>the</strong>r <strong>in</strong> <strong>the</strong>ir personal or <strong>in</strong> <strong>the</strong>ir work<br />

relationships or <strong>in</strong> <strong>the</strong>ir connection to br<strong>and</strong>s. <strong>The</strong> best practice is accord<strong>in</strong>g to Gobé’s (2001)<br />

four pillars when all five senses are <strong>in</strong>volved <strong>in</strong>to <strong>the</strong> strategy, not just <strong>the</strong> eyes which are <strong>the</strong><br />

most obvious ones <strong>in</strong> every product communication. In my op<strong>in</strong>ion <strong>the</strong> br<strong>and</strong> should have a<br />

smell, a voice <strong>and</strong> a taste as well <strong>in</strong> order to build an overall <strong>and</strong> long-term loyalty among<br />

customers. Accord<strong>in</strong>g to <strong>the</strong> research <strong>of</strong> Sounds Like <strong>Br<strong>and</strong><strong>in</strong>g</strong> (Heartbeats, 2009a) hear<strong>in</strong>g is<br />

<strong>the</strong> second most important sense after see<strong>in</strong>g <strong>in</strong> <strong>the</strong> process <strong>of</strong> br<strong>and</strong><strong>in</strong>g. Without any music a<br />

true experience cannot be created: just th<strong>in</strong>k about TV commercials, any k<strong>in</strong>d <strong>of</strong> events or a<br />

pleasure grounds. So it is an essential step <strong>of</strong> music br<strong>and</strong><strong>in</strong>g to identify <strong>the</strong> music identity <strong>of</strong><br />

<strong>the</strong> br<strong>and</strong> that can be a differentiation element <strong>in</strong> <strong>the</strong> competitive environment.<br />

3.1.4. … Exclusivity<br />

<strong>Music</strong> enables generat<strong>in</strong>g exclusive contents, although <strong>the</strong> core products are mostly available<br />

onl<strong>in</strong>e for free by illegal download<strong>in</strong>g sites. Consequently, <strong>in</strong> order to price <strong>the</strong> different<br />

cultural goods, exclusive merch<strong>and</strong>is<strong>in</strong>g products <strong>and</strong> social media activities are needed<br />

supported by <strong>the</strong> means <strong>of</strong> iconic <strong>and</strong> personal br<strong>and</strong><strong>in</strong>g. Through exclusive contents fans can<br />

feel <strong>the</strong>mselves appreciated <strong>and</strong> special, which will be manifested <strong>in</strong> future purchases on a<br />

long-term as well.<br />

Personal br<strong>and</strong><strong>in</strong>g is a necessary phenomenon <strong>in</strong> <strong>the</strong> concept <strong>of</strong> music br<strong>and</strong><strong>in</strong>g. <strong>The</strong>re are<br />

numerous examples <strong>of</strong> people who become br<strong>and</strong>s. Personal br<strong>and</strong> is a personal identity that<br />

stimulates precise, mean<strong>in</strong>gful perception <strong>in</strong> <strong>its</strong> audience about <strong>the</strong> values <strong>and</strong> qualities that<br />

person st<strong>and</strong>s for (Montoya, 2010). Internationally, several names across <strong>in</strong>dustry sectors<br />

9


(especially <strong>in</strong> media <strong>in</strong>dustries) <strong>and</strong> occupational pr<strong>of</strong>iles come to m<strong>in</strong>d <strong>in</strong>clud<strong>in</strong>g Madonna,<br />

Armani, Michael Jackson, Tiger Woods, Michael Jordan <strong>and</strong> so on. In <strong>the</strong> bus<strong>in</strong>ess area <strong>the</strong><br />

phenomenon is altered just as <strong>the</strong> dynamic CEOs <strong>of</strong> a company become <strong>in</strong>tr<strong>in</strong>sically l<strong>in</strong>ked to<br />

<strong>the</strong> companies <strong>the</strong>y represent (Steve Jobs – Apple, Bill Gates – Micros<strong>of</strong>t etc.).<br />

In <strong>the</strong> music scene Lady Gaga mastered <strong>in</strong> personal br<strong>and</strong><strong>in</strong>g nowadays, who imploded <strong>in</strong>to<br />

music bus<strong>in</strong>ess only <strong>in</strong> 2008 becom<strong>in</strong>g a superstar <strong>in</strong> scarcely a year. She clearly def<strong>in</strong>ed her<br />

identity by start<strong>in</strong>g her career <strong>in</strong> pop culture, be<strong>in</strong>g stamped as outré (unusual, different), but<br />

accord<strong>in</strong>gly a creative pop diva accompanied by a pr<strong>of</strong>essional management team <strong>and</strong> stylist<br />

group. Fur<strong>the</strong>rmore, she uses <strong>the</strong> power <strong>of</strong> viral media extraord<strong>in</strong>arily by build<strong>in</strong>g an<br />

exclusive community for ’Monsters’, for her fans who are will<strong>in</strong>g to be labelled like that.<br />

3.2. Process <strong>of</strong> <strong>Music</strong> <strong>Br<strong>and</strong><strong>in</strong>g</strong><br />

For apply<strong>in</strong>g music br<strong>and</strong><strong>in</strong>g <strong>the</strong> follow<strong>in</strong>g processes have to be considered by corporate<br />

management depicted on Figure 1.<br />

First <strong>of</strong> all, <strong>the</strong> def<strong>in</strong>ition <strong>of</strong> br<strong>and</strong> equity <strong>and</strong> music identity is crucial <strong>in</strong> order to def<strong>in</strong>e <strong>the</strong><br />

future objectives <strong>of</strong> music br<strong>and</strong><strong>in</strong>g. Thus, <strong>the</strong> traditional STP strategy <strong>of</strong> a br<strong>and</strong> is needed,<br />

where target audience will be analysed by creation <strong>of</strong> different segments accord<strong>in</strong>g to<br />

consumer behaviour.<br />

<strong>The</strong> most critical part <strong>of</strong> <strong>the</strong> process comes <strong>in</strong>to <strong>the</strong> picture <strong>in</strong> <strong>the</strong> next step: <strong>the</strong> choice <strong>of</strong> an<br />

appropriate b<strong>and</strong> or artist. It is essential that not just f<strong>in</strong>ancial resources have to be taken <strong>in</strong>to<br />

account, but <strong>the</strong> possibility for build<strong>in</strong>g a fruitful partner relationship between <strong>the</strong> two actors.<br />

After that holistic music identity is def<strong>in</strong>ed <strong>in</strong>volv<strong>in</strong>g all related areas <strong>of</strong> music (fashion, sport,<br />

<strong>the</strong>atre, film etc.) <strong>and</strong> <strong>the</strong> music br<strong>and</strong><strong>in</strong>g strategy has to be designed on an operative level as<br />

well by decid<strong>in</strong>g which cooperation strategy <strong>the</strong> br<strong>and</strong> would like to chose <strong>in</strong> a case <strong>of</strong> a<br />

particular artist. In addition, licens<strong>in</strong>g strategy has to be built <strong>in</strong>to <strong>the</strong> music br<strong>and</strong><strong>in</strong>g strategy,<br />

s<strong>in</strong>ce <strong>in</strong> today’s’ music bus<strong>in</strong>ess artists ga<strong>in</strong> <strong>the</strong>ir <strong>in</strong>come mostly from royalties.<br />

When all <strong>of</strong> <strong>the</strong>se areas are set up, an onl<strong>in</strong>e social market<strong>in</strong>g strategy has to be developed<br />

where perpetual <strong>in</strong>teraction <strong>and</strong> participation is needed. In <strong>the</strong> end, feedback measurement is<br />

necessary, <strong>and</strong> due to <strong>the</strong> onl<strong>in</strong>e aspect <strong>of</strong> music br<strong>and</strong><strong>in</strong>g supported by different onl<strong>in</strong>e tools<br />

this action is more <strong>and</strong> more expressed <strong>in</strong> quantitative terms as well.<br />

10


1. Def<strong>in</strong>iton <strong>of</strong><br />

br<strong>and</strong> equity<br />

<strong>and</strong> music<br />

iden,ty<br />

10. Measur<strong>in</strong>g<br />

feedback<br />

Service<br />

Figure 1. <strong>The</strong> process <strong>of</strong> strategic music br<strong>and</strong><strong>in</strong>g<br />

Associa,on strategy<br />

Par,cipa,on strategy<br />

Explor<strong>in</strong>g strategy<br />

Image transfer<br />

Source: Author’s edition<br />

3.3. <strong>Strategic</strong> models <strong>of</strong> music br<strong>and</strong><strong>in</strong>g built upon case studies<br />

In <strong>the</strong> literature <strong>of</strong> br<strong>and</strong><strong>in</strong>g <strong>the</strong>re are several case studies available where music plays a<br />

crucial role <strong>in</strong> <strong>the</strong> br<strong>and</strong><strong>in</strong>g strategy process. In <strong>the</strong> follow<strong>in</strong>g <strong>the</strong> different cooperation<br />

strategic aspects <strong>of</strong> music will be depicted accord<strong>in</strong>g to <strong>the</strong>ir objective <strong>in</strong> <strong>the</strong> br<strong>and</strong><strong>in</strong>g<br />

strategy.<br />

2. Def<strong>in</strong>i,on <strong>of</strong><br />

objec,ves <strong>in</strong><br />

music br<strong>and</strong><strong>in</strong>g<br />

9. Perpetual<br />

<strong>in</strong>terac,on -­‐<br />

social<br />

marke,ng<br />

Figure 2. Cooperation strategies accord<strong>in</strong>g to <strong>the</strong> long-term goal <strong>in</strong> music br<strong>and</strong><strong>in</strong>g<br />

3.3.1. Association strategy – connection to <strong>the</strong> fan base <strong>of</strong> <strong>the</strong> artists<br />

<strong>The</strong> best practice for a br<strong>and</strong> to streng<strong>the</strong>n <strong>its</strong> br<strong>and</strong> equity <strong>and</strong> to build a strong emotional<br />

relationship with <strong>its</strong> customers is <strong>the</strong> association <strong>of</strong> a special artist where <strong>the</strong> br<strong>and</strong> is able to<br />

get connected to <strong>the</strong> fan base <strong>of</strong> <strong>the</strong> artist.<br />

3. Def<strong>in</strong>i,on <strong>of</strong><br />

target audience<br />

8. Licens<strong>in</strong>g<br />

strategy<br />

One <strong>of</strong> <strong>the</strong> best examples for association strategy is Groove Armada <strong>and</strong> Bacardi’s<br />

cooperation (Bold, 2008), where Bacardi represented <strong>the</strong> role <strong>of</strong> a record<strong>in</strong>g company <strong>and</strong><br />

provided fans with exclusive content on onl<strong>in</strong>e platforms. On social media sites Bacardi<br />

<strong>of</strong>fered free content to fans, but <strong>the</strong>y had to share this opportunity by exploit<strong>in</strong>g <strong>the</strong> snowball<br />

effect <strong>of</strong> diffusion. So not just positive reputation <strong>and</strong> association was evolved <strong>in</strong> case <strong>of</strong><br />

Bacardi, but through <strong>the</strong> viral effect both <strong>the</strong> artist <strong>and</strong> <strong>the</strong> company could widen <strong>the</strong> group <strong>of</strong><br />

fans, so <strong>the</strong>ir cooperation resulted <strong>in</strong> a great success. (Bold, 2008)<br />

4. Analyz<strong>in</strong>g<br />

consumer<br />

behaviour<br />

7. Def<strong>in</strong>i,on <strong>of</strong><br />

holis,c music<br />

iden,ty <strong>and</strong> music<br />

br<strong>and</strong><strong>in</strong>g strategy<br />

5. Chos<strong>in</strong>g<br />

appropriate<br />

ar,st/b<strong>and</strong><br />

6. Evok<strong>in</strong>g<br />

partner<br />

rela,onship<br />

Source: Author’s edition <strong>and</strong> underst<strong>and</strong><strong>in</strong>g based on Heartbeats, 2010<br />

11


3.3.2. Participatory Strategy – „social music” revolution<br />

Two different aspects <strong>in</strong> <strong>the</strong> topic can be considered. First <strong>of</strong> all, ‘everyone is an artist’, which<br />

created <strong>the</strong> popular permeation <strong>of</strong> UGC content (User Generated Content) <strong>in</strong>volv<strong>in</strong>g a high<br />

level <strong>of</strong> social <strong>in</strong>teraction. (La<strong>in</strong>son, 2010) <strong>The</strong> o<strong>the</strong>r perspective is participatory culture that<br />

can be def<strong>in</strong>ed as <strong>the</strong> follow<strong>in</strong>g: a culture <strong>and</strong> media platform with relatively low barriers to<br />

artistic expression <strong>and</strong> civic engagement, strong support for creat<strong>in</strong>g <strong>and</strong> shar<strong>in</strong>g one's<br />

creations with o<strong>the</strong>rs, where members believe that <strong>the</strong>ir contributions matter by some degree<br />

<strong>of</strong> social connection with one ano<strong>the</strong>r. (Jenk<strong>in</strong>s, 2006)<br />

Nowadays <strong>the</strong>re is an unavoidable trend <strong>in</strong> social media: not just <strong>in</strong>dividuals use <strong>its</strong> benef<strong>its</strong><br />

every day, but more <strong>and</strong> more br<strong>and</strong>s apply different social media tools dur<strong>in</strong>g <strong>the</strong>ir market<strong>in</strong>g<br />

communication strategy. So it is not anymore surpris<strong>in</strong>g when we f<strong>in</strong>d companies with music<br />

br<strong>and</strong><strong>in</strong>g on social media sites. One <strong>of</strong> <strong>the</strong> most <strong>of</strong>ten form <strong>of</strong> music br<strong>and</strong><strong>in</strong>g <strong>in</strong> a social<br />

media environment is remix competitions or communities based on musical activity like<br />

MySpace or Sound Cloud. <strong>The</strong>se occasions <strong>of</strong>fer outst<strong>and</strong><strong>in</strong>g opportunity for fans to express<br />

<strong>the</strong>ir creativity <strong>and</strong> for br<strong>and</strong>s to establish <strong>in</strong>teractivity, s<strong>in</strong>ce customers are more open-<br />

m<strong>in</strong>ded <strong>in</strong> a community connected to music by show<strong>in</strong>g <strong>the</strong>ir artefacts <strong>and</strong> remixes to o<strong>the</strong>r<br />

fans <strong>and</strong> to <strong>the</strong> artist <strong>its</strong>elf. This solution can be perfect for target<strong>in</strong>g an artist group or die hard<br />

fans reach<strong>in</strong>g a wider audience.<br />

This strategic method is applied <strong>in</strong> <strong>the</strong> case <strong>of</strong> onl<strong>in</strong>e stream<strong>in</strong>g music service, Spotify as well.<br />

Spotify is already <strong>in</strong>tegrated <strong>in</strong>to <strong>the</strong> biggest social media site, Facebook <strong>in</strong> a form <strong>of</strong> an<br />

application which always shows your playlist. Fur<strong>the</strong>rmore, <strong>the</strong>re are occasional campaigns<br />

where fans can upload <strong>the</strong>ir music mix as well to Spotify, or to play each o<strong>the</strong>r’s’ playlists<br />

enhanc<strong>in</strong>g fur<strong>the</strong>r <strong>in</strong>teraction between customers <strong>and</strong> br<strong>and</strong>s.<br />

3.3.3. Explor<strong>in</strong>g strategy – <strong>the</strong> way to new musical experiences<br />

Explor<strong>in</strong>g strategy means that customers can discover new music genres or less popular artists<br />

through music br<strong>and</strong><strong>in</strong>g apply<strong>in</strong>g <strong>the</strong> long-tail effect by Anderson (2006). Anderson (2006)<br />

states that via Internet <strong>the</strong>re are content available, which have only a marg<strong>in</strong>al target group.<br />

However, through an accurate digital market<strong>in</strong>g strategy niche content from <strong>the</strong> supply side<br />

can f<strong>in</strong>d <strong>its</strong> dem<strong>and</strong> on a lower cost. This music br<strong>and</strong><strong>in</strong>g cooperation strategy can be applied<br />

by <strong>in</strong>troduction <strong>of</strong> a new artist (<strong>in</strong> case <strong>of</strong> Sony Bravia José Gonzales was a special guest <strong>in</strong><br />

commercial <strong>in</strong> 2007 or <strong>in</strong> case <strong>of</strong> Dreamgirls Jennifer Hudson was <strong>in</strong>troduced at <strong>the</strong> beg<strong>in</strong>n<strong>in</strong>g<br />

<strong>of</strong> her career) or organiz<strong>in</strong>g talent shows (<strong>in</strong> case <strong>of</strong> X-factor for <strong>in</strong>stance <strong>in</strong> Hungary).<br />

12


As ano<strong>the</strong>r example Procter <strong>and</strong> Gamble created <strong>the</strong> project Ramp <strong>Music</strong> for Duracell<br />

establish<strong>in</strong>g an onl<strong>in</strong>e platform for unsigned artists. This onl<strong>in</strong>e platform provided a talent<br />

competition, where audience could vote for <strong>the</strong>ir favourites. This campaign was<br />

predom<strong>in</strong>antly successful: Duracell could position <strong>its</strong>elf for artist target groups <strong>and</strong> it could<br />

<strong>in</strong>crease <strong>its</strong> awareness among this special group. (Heartbeats, 2009b)<br />

3.3.4. Image transfer from pop stars to br<strong>and</strong>s (R<strong>in</strong>ge, 2009)<br />

<strong>The</strong> relationship between pop stars <strong>and</strong> br<strong>and</strong>s are suited for creat<strong>in</strong>g a positive image,<br />

boost<strong>in</strong>g <strong>the</strong> reputation <strong>of</strong> a br<strong>and</strong> or <strong>in</strong> <strong>the</strong> o<strong>the</strong>r way round. Accord<strong>in</strong>g to <strong>the</strong> objective <strong>of</strong><br />

image creation three different categories can be differentiated:<br />

- Creat<strong>in</strong>g image: when <strong>the</strong> br<strong>and</strong> is <strong>in</strong> <strong>the</strong> beg<strong>in</strong>n<strong>in</strong>g phase <strong>of</strong> <strong>its</strong> product lifecycle,<br />

usually <strong>the</strong>re is no strong association or image <strong>in</strong> <strong>the</strong> target group’s evaluation, <strong>the</strong><br />

relationship between br<strong>and</strong> <strong>and</strong> b<strong>and</strong>s are crucial from <strong>the</strong> generation <strong>of</strong> a mutual<br />

unique br<strong>and</strong> equity, which can be translated <strong>in</strong>to f<strong>in</strong>ancial numbers as well <strong>in</strong> <strong>the</strong><br />

<strong>in</strong>creas<strong>in</strong>g sales <strong>of</strong> <strong>the</strong> product.<br />

- Image alteration: when <strong>the</strong> present image is not <strong>the</strong> same with <strong>the</strong> wish image,<br />

cooperation with artists can be used for improv<strong>in</strong>g <strong>the</strong> reputation. Although it is<br />

important to note that <strong>in</strong> this case radical changes have to be avoided <strong>in</strong> order not to<br />

confuse <strong>the</strong> customers’ perceptions.<br />

- Image stabilization: <strong>in</strong> this case perpetual attention is <strong>of</strong> crucial importance, even if<br />

<strong>the</strong> br<strong>and</strong> has a well-positioned br<strong>and</strong> image. <strong>The</strong> supportive function is strong <strong>in</strong> <strong>the</strong><br />

image stabilization phase, when different associations with <strong>the</strong> artists are support<strong>in</strong>g<br />

<strong>the</strong> br<strong>and</strong> image <strong>its</strong>elf.<br />

In <strong>the</strong> follow<strong>in</strong>g figure I demonstrated how music is able to <strong>in</strong>fluence br<strong>and</strong> image with <strong>the</strong><br />

cooperation <strong>of</strong> <strong>the</strong> right artist.<br />

13


Figure 3. <strong>The</strong> effects <strong>of</strong> cooperation between br<strong>and</strong> <strong>and</strong> artist<br />

Consequently, where <strong>the</strong> congruence is weak <strong>and</strong> negative attitude alteration is enabled<br />

towards a br<strong>and</strong>, image damage is evolved, as long as where middle or strong attitude change<br />

is fostered, positive image creation or modification has been noticed through <strong>the</strong> partner<br />

relationship. Image stabilization is revealed only when congruence is almost 100 %, but <strong>the</strong><br />

attitude change is modest.<br />

Image transfer <strong>in</strong> a positive way is only accessible when br<strong>and</strong>s <strong>and</strong> b<strong>and</strong>s are able to work as<br />

a team. <strong>The</strong>y have to align values, agree on objectives, respect <strong>and</strong> underst<strong>and</strong> each o<strong>the</strong>r <strong>and</strong><br />

<strong>the</strong>y have to f<strong>in</strong>d <strong>the</strong>ir mutual way how to focus on <strong>the</strong>ir core competences. It is not reachable<br />

without genu<strong>in</strong>e commitment, flexibility to experiment <strong>and</strong> good communication skills where<br />

creativity is well respected. For a smooth relationship <strong>the</strong> br<strong>and</strong> has to evaluate <strong>and</strong> identify<br />

<strong>its</strong> music identity <strong>in</strong> order to f<strong>in</strong>d <strong>the</strong> best fitt<strong>in</strong>g musician for this aim.<br />

3.3.5. Content Service<br />

Content is a sum <strong>of</strong> relevant <strong>in</strong>formation ei<strong>the</strong>r <strong>in</strong> an artistic or general way, which creates<br />

value for <strong>its</strong> users. Content service is a crucial def<strong>in</strong>ition <strong>in</strong> music <strong>in</strong>dustry as well, s<strong>in</strong>ce<br />

besides events (concerts, shows), recorded or o<strong>the</strong>r physical products connected to music<br />

enable an emotional bond with fans.<br />

Source: R<strong>in</strong>ge, 2009<br />

<strong>The</strong> ma<strong>in</strong> objective <strong>of</strong> several companies especially related to creative <strong>in</strong>dustries is to <strong>of</strong>fer<br />

relevant <strong>and</strong> quality content to <strong>its</strong> customers. In my op<strong>in</strong>ion <strong>the</strong> overall strategic tool <strong>of</strong> music<br />

br<strong>and</strong><strong>in</strong>g is content service appear<strong>in</strong>g <strong>in</strong> every cooperation strategies as a supportive<br />

approach. “Content market<strong>in</strong>g is a market<strong>in</strong>g technique <strong>of</strong> creat<strong>in</strong>g <strong>and</strong> distribut<strong>in</strong>g relevant<br />

<strong>and</strong> valuable content to attract, acquire, <strong>and</strong> engage a clearly def<strong>in</strong>ed <strong>and</strong> understood target<br />

14


audience - with <strong>the</strong> objective <strong>of</strong> driv<strong>in</strong>g pr<strong>of</strong>itable customer action.” (Content Market<strong>in</strong>g<br />

Institution, 2012. Available: www.contentmarket<strong>in</strong>g<strong>in</strong>stitute.com. Retrieved: April 2012) In<br />

<strong>the</strong> white paper <strong>of</strong> Content Market<strong>in</strong>g Institution (2012) <strong>the</strong> B.E.S.T. model suggests that<br />

content is able to br<strong>in</strong>g <strong>in</strong>to <strong>the</strong> br<strong>and</strong><strong>in</strong>g strategy a Behavioral, Essential, <strong>Strategic</strong> <strong>and</strong><br />

Targeted perspective.<br />

Without attempt<strong>in</strong>g to be comprehensive, <strong>the</strong> follow<strong>in</strong>g musical content can be implemented<br />

dur<strong>in</strong>g <strong>the</strong> music br<strong>and</strong><strong>in</strong>g strategy:<br />

Mobile-­‐friendly content<br />

Figure 4. <strong>Music</strong> Content Services<br />

Social media sites (blogs, arAcles, music stream<strong>in</strong>g)<br />

Podcasts<br />

Videos download, stream<strong>in</strong>g<br />

In-­‐Person events<br />

NewsleJers<br />

Audiovisual ediAng<br />

Call acAon for UGC<br />

Br<strong>and</strong>-­‐owned plaQorms for communicaAon<br />

Source: Author’s edition<br />

For content service several bus<strong>in</strong>ess models arisen where ‘free’ ga<strong>in</strong>ed a new underst<strong>and</strong><strong>in</strong>g<br />

accord<strong>in</strong>g to Anderson (2009). Fur<strong>the</strong>rmore, Freemium models make it possible to <strong>of</strong>fer some<br />

content for free, where genu<strong>in</strong>e fans can access exclusive content for a subscription fee.<br />

4. Value creat<strong>in</strong>g mechanism<br />

As it was depicted, music br<strong>and</strong><strong>in</strong>g has different faces <strong>and</strong> dist<strong>in</strong>guished strategic aspects as<br />

well. <strong>The</strong> br<strong>and</strong> personality, br<strong>and</strong> identity <strong>and</strong> <strong>the</strong> objectives <strong>of</strong> <strong>the</strong> br<strong>and</strong> def<strong>in</strong>e <strong>the</strong> strategic<br />

way <strong>of</strong> music br<strong>and</strong><strong>in</strong>g, however, all processes create value for <strong>the</strong> three actors <strong>of</strong> music<br />

br<strong>and</strong><strong>in</strong>g: musician, br<strong>and</strong>, customer. In this chapter I will depict <strong>the</strong> value creation<br />

mechanism <strong>of</strong> music br<strong>and</strong><strong>in</strong>g <strong>and</strong> all effects, where from a br<strong>and</strong> perspective <strong>the</strong> most<br />

important value is <strong>the</strong> one created for customers.<br />

15


Figure 5. <strong>The</strong> model <strong>of</strong> simplified value creation through music br<strong>and</strong><strong>in</strong>g<br />

Self-­‐<br />

br<strong>and</strong><strong>in</strong>g<br />

<strong>Music</strong><br />

br<strong>and</strong><strong>in</strong>g<br />

Iconic<br />

br<strong>and</strong><strong>in</strong>g<br />

Br<strong>and</strong><br />

Values:<br />

Image<br />

transfer<br />

Interac,on Awareness<br />

Fan<br />

build<strong>in</strong>g<br />

F<strong>in</strong>ancial<br />

<strong>in</strong>come<br />

Source: Author’s edition<br />

In <strong>the</strong> follow<strong>in</strong>g I will demonstrate <strong>the</strong> value created for artists, br<strong>and</strong>s <strong>and</strong> consumers <strong>in</strong><br />

different visual forms <strong>and</strong> I will highlight <strong>the</strong> ma<strong>in</strong> conclusions <strong>of</strong> <strong>the</strong>m.<br />

4.1. Value for artists<br />

Value<br />

Fan<br />

For an artist/musician/b<strong>and</strong> value creation seems to be simple through music br<strong>and</strong><strong>in</strong>g, s<strong>in</strong>ce<br />

<strong>the</strong>ir efforts are resulted <strong>in</strong> f<strong>in</strong>ancial <strong>in</strong>come. As it was already mentioned before, <strong>the</strong> f<strong>in</strong>ancial<br />

dimension <strong>of</strong> value creation is not considered <strong>in</strong> this paper, so I had to scrut<strong>in</strong>ize this topic on<br />

a higher level. After <strong>the</strong> <strong>in</strong>-depth <strong>in</strong>terviews with musicians <strong>the</strong> picture <strong>of</strong> value creation for<br />

artists was already cleared, depicted <strong>in</strong> Figure 6.<br />

ArAst<br />

Value<br />

Br<strong>and</strong><br />

Value<br />

Figure 6. <strong>Music</strong> br<strong>and</strong><strong>in</strong>g value for artists<br />

Source: Author’s edition<br />

<strong>Music</strong>ians are able to <strong>in</strong>crease <strong>the</strong>ir awareness through music br<strong>and</strong><strong>in</strong>g widen<strong>in</strong>g <strong>the</strong>ir fan<br />

base; moreover, <strong>the</strong>ir br<strong>and</strong> image could alter <strong>in</strong> a positive way as well through <strong>the</strong> image<br />

transfer effect. From <strong>the</strong> <strong>in</strong>-depth <strong>in</strong>terviews fur<strong>the</strong>r values were considered as well:<br />

<strong>in</strong>teraction with fans is supported <strong>and</strong> musicians extremely value <strong>the</strong> dimension <strong>of</strong> fan<br />

build<strong>in</strong>g. As one <strong>of</strong> <strong>the</strong> musicians said: „Br<strong>and</strong>s are not ‘cows’ for us represent<strong>in</strong>g a f<strong>in</strong>ancial<br />

16


esource – we need <strong>the</strong>m for improv<strong>in</strong>g our tools <strong>and</strong> story, <strong>and</strong> to give some exclusive<br />

content for our valued fans. Without <strong>the</strong>m we would no one.”<br />

4.2. Value for br<strong>and</strong>s<br />

In case <strong>of</strong> br<strong>and</strong>s <strong>the</strong> value creation mechanism is much more complex. Firstly, three ma<strong>in</strong><br />

steps are enabled: <strong>the</strong> strategic <strong>in</strong>tegration, communication <strong>and</strong> br<strong>and</strong> image.<br />

<strong>Strategic</strong> <strong>in</strong>tegration <strong>of</strong> music br<strong>and</strong><strong>in</strong>g requires a holistic approach, s<strong>in</strong>ce <strong>its</strong> implementation<br />

can be used <strong>in</strong> a wide variety <strong>of</strong> platforms. Practitioners have to identify <strong>the</strong> ma<strong>in</strong> unique<br />

factors <strong>in</strong> order to achieve <strong>the</strong> ultimate goal: differentiation from competitors. Co-creation is<br />

built on equal partnership relations, s<strong>in</strong>ce <strong>in</strong> a successful relationship (so <strong>in</strong> music br<strong>and</strong><strong>in</strong>g<br />

partnership as well) equality is <strong>the</strong> most important factor. As <strong>the</strong> representative <strong>of</strong> Red Bull<br />

said: “Trust <strong>and</strong> two-sided communication are essential, because no one knows from whom<br />

exactly <strong>the</strong> creative <strong>and</strong> successful ideas are com<strong>in</strong>g <strong>and</strong> this attitude improves <strong>the</strong> quality <strong>of</strong><br />

cooperation <strong>and</strong> <strong>its</strong> results.“ From <strong>the</strong> customer po<strong>in</strong>t <strong>of</strong> view cooperation <strong>and</strong> co-creation<br />

are buzzwords, s<strong>in</strong>ce customers are respected by gett<strong>in</strong>g <strong>in</strong>volved <strong>in</strong> <strong>the</strong> decision-mak<strong>in</strong>g<br />

process <strong>of</strong> <strong>in</strong>troduc<strong>in</strong>g a new version <strong>of</strong> a product for <strong>in</strong>stance. <strong>Music</strong> is a perfect tool for this<br />

value, because <strong>of</strong> <strong>the</strong> social power <strong>of</strong> music – a whole community can be <strong>in</strong>volved through<br />

music along different segmentation characteristics. By identify<strong>in</strong>g <strong>the</strong>se fans different fan<br />

analytical tools were evolved where not just demographics, but <strong>in</strong> <strong>in</strong>novative ones lifestyle<br />

tra<strong>its</strong> are exam<strong>in</strong>ed too.<br />

• EmoAons<br />

• Experiences<br />

• Engagement<br />

• Exclusive content<br />

• InteracAon<br />

• Credibility<br />

Figure 7. Value for br<strong>and</strong>s through music br<strong>and</strong><strong>in</strong>g<br />

COMMUNICATION<br />

STRATEGIC<br />

INTEGRATION<br />

BRAND IMAGE<br />

• DifferenAaAon<br />

• Co-­‐creaAon<br />

• Customer loyalty<br />

• Exclusive channel<br />

• Own music plaQorm<br />

• HolisAc approach<br />

• Long-­‐term th<strong>in</strong>k<strong>in</strong>g<br />

• InnovaAon<br />

• Fan analyAcal tools for measurement<br />

• Lovemark<br />

• Image transfer<br />

• AssociaAon<br />

• Explor<strong>in</strong>g<br />

• <strong>Music</strong> idenAty<br />

• Br<strong>and</strong> equity<br />

Source: Author’s edition<br />

Innovation is ano<strong>the</strong>r dimension for value creation dur<strong>in</strong>g music br<strong>and</strong><strong>in</strong>g which is <strong>of</strong> crucial<br />

importance acknowledg<strong>in</strong>g <strong>the</strong> fact that <strong>in</strong>novation is a competitive advantage <strong>in</strong> today’s<br />

17


economy. (Schumpeter, 1934) Companies who are able to foster <strong>in</strong>novation activities can<br />

engage <strong>the</strong>ir customers on a long-term basis. (Porter, 1996) On <strong>the</strong> o<strong>the</strong>r h<strong>and</strong>, concepts ga<strong>in</strong><br />

<strong>in</strong>fluence stat<strong>in</strong>g that social dimensions <strong>of</strong> technical <strong>in</strong>novations should no longer be<br />

neglected, but special qualities <strong>of</strong> social <strong>in</strong>novations also have to be taken <strong>in</strong>to account<br />

(Howaldt – Schwarz, 2010).<br />

Long-term th<strong>in</strong>k<strong>in</strong>g is <strong>the</strong> basis <strong>of</strong> a strategic plan. Successful <strong>in</strong>novations <strong>and</strong> bus<strong>in</strong>esses<br />

th<strong>in</strong>k not just on an operational level for a year, but at least <strong>in</strong> a 5 years term. (Porter, 1996) In<br />

case <strong>of</strong> music br<strong>and</strong><strong>in</strong>g it long-term th<strong>in</strong>k<strong>in</strong>g is an essential factor to be understood, s<strong>in</strong>ce it<br />

requires a longer period to establish a genu<strong>in</strong>e relationship between br<strong>and</strong>s <strong>and</strong> b<strong>and</strong>s.<br />

For strategic <strong>in</strong>tegration, music could seem to be a subjective element <strong>of</strong> a br<strong>and</strong>, which<br />

cannot be measured on an objective base, but <strong>the</strong>re are different mechanisms to convert music<br />

br<strong>and</strong><strong>in</strong>g <strong>in</strong>to quantifiable data. For <strong>in</strong>stance, <strong>the</strong> onl<strong>in</strong>e fan analytics application <strong>of</strong> Next<br />

Big Sound (Available: www.nextbigsound.com. Retrieved: April 2012) makes it possible to<br />

monitor <strong>the</strong> behaviors <strong>of</strong> fans <strong>and</strong> consumers. <strong>The</strong> site provides stats that <strong>in</strong>clude data for<br />

thous<strong>and</strong>s <strong>of</strong> musicians <strong>and</strong> b<strong>and</strong>s <strong>in</strong> real time, so br<strong>and</strong>s can chose <strong>the</strong> most applicable one<br />

for <strong>the</strong>ir music br<strong>and</strong><strong>in</strong>g strategy. <strong>The</strong> number <strong>of</strong> new fans is depicted on a l<strong>in</strong>e graph along<br />

with a list <strong>of</strong> popular social networks <strong>in</strong>clud<strong>in</strong>g Last.FM, My Space, Facebook, YouTube,<br />

Rdio <strong>and</strong> Twitter, moreover comb<strong>in</strong>ed stats <strong>of</strong> specific onl<strong>in</strong>e communicates can be viewed as<br />

well.<br />

In <strong>the</strong> communication dimension besides <strong>the</strong> abovementioned 4 Es, br<strong>and</strong> representatives<br />

among depth-<strong>in</strong>terviews mention credibility <strong>and</strong> <strong>in</strong>teraction. As we could see <strong>in</strong> <strong>the</strong> case<br />

studies <strong>the</strong>re is a wide variety <strong>of</strong> possibilities how to <strong>in</strong>teract positively with customers like<br />

remix<strong>in</strong>g competitions etc. Interactivity is becom<strong>in</strong>g an entrance barrier for communication<br />

<strong>of</strong> br<strong>and</strong>s <strong>and</strong> customers nowadays, where music appears to be a genu<strong>in</strong>e platform.<br />

Credibility is essential for achiev<strong>in</strong>g <strong>the</strong> targeted goals – message is mediated to <strong>the</strong> customer<br />

<strong>in</strong> quality, which means that both <strong>the</strong> br<strong>and</strong> <strong>and</strong> b<strong>and</strong> cooperate <strong>in</strong> a genu<strong>in</strong>e way. <strong>Music</strong>ians<br />

are op<strong>in</strong>ion leaders who are able to translate <strong>the</strong> message <strong>of</strong> a product <strong>in</strong> a much more genu<strong>in</strong>e<br />

way <strong>in</strong> <strong>the</strong> form <strong>of</strong> WoM. Accord<strong>in</strong>g to Nielsen (2007) <strong>the</strong> source <strong>of</strong> op<strong>in</strong>ion leaders (like<br />

musicians) seemed to be significantly more credible source <strong>of</strong> product evaluation than<br />

commercials. Kotler’s (2010) Market<strong>in</strong>g 3.0 already po<strong>in</strong>ted out that customers expect more<br />

than just functional products, but exclusivity <strong>and</strong> spirituality from <strong>the</strong> company as well – <strong>the</strong><br />

cultural mission <strong>of</strong> music br<strong>and</strong><strong>in</strong>g can cover this dimension <strong>of</strong> value creation as well.<br />

18


On <strong>the</strong> judgment <strong>of</strong> br<strong>and</strong> image music br<strong>and</strong><strong>in</strong>g has a powerful effect by <strong>the</strong> phenomenon <strong>of</strong><br />

iconic br<strong>and</strong><strong>in</strong>g, Lovemark (Roberts, 2004) <strong>and</strong> emotional br<strong>and</strong><strong>in</strong>g. All <strong>the</strong>se are resulted <strong>in</strong><br />

<strong>the</strong> above mentioned strategies, where <strong>the</strong> reputation <strong>of</strong> a br<strong>and</strong> is <strong>in</strong>volved as well. Iconic<br />

br<strong>and</strong><strong>in</strong>g as element <strong>of</strong> Lovemark (Roberts, 2004) <strong>and</strong> all <strong>the</strong> abovementioned association<br />

strategies help to improve <strong>the</strong> br<strong>and</strong> image. <strong>The</strong> br<strong>and</strong> <strong>its</strong>elf can f<strong>in</strong>d <strong>the</strong> music equity, which<br />

may be applied dur<strong>in</strong>g emotional br<strong>and</strong><strong>in</strong>g as well (Gobé, 2001) result<strong>in</strong>g <strong>in</strong> an <strong>in</strong>creas<strong>in</strong>g<br />

consumer loyalty <strong>and</strong> higher level <strong>of</strong> <strong>in</strong>volvement. Iconic br<strong>and</strong>s address acute contradictions<br />

<strong>in</strong> society. Iconic br<strong>and</strong>s have strong cultural roots that tap <strong>in</strong>to society’s values, sometimes<br />

even <strong>in</strong>spir<strong>in</strong>g a shift <strong>in</strong> those values. <strong>The</strong>y possess physical or symbolic features that make<br />

<strong>the</strong>m <strong>in</strong>stantly recognizable. <strong>The</strong>y have a compell<strong>in</strong>g story <strong>and</strong> manage to rema<strong>in</strong> true to <strong>the</strong>ir<br />

orig<strong>in</strong>al values while re<strong>in</strong>terpret<strong>in</strong>g <strong>the</strong>m <strong>in</strong> light <strong>of</strong> contemporary culture. (Millward Brown,<br />

2007)<br />

4.3. Value for customers<br />

Customer-centric value is analysed by three different dimensions: <strong>in</strong>teraction between br<strong>and</strong>,<br />

musician <strong>and</strong> o<strong>the</strong>r customers. <strong>The</strong> br<strong>and</strong> is more likely able to differentiate <strong>its</strong>elf through<br />

music br<strong>and</strong><strong>in</strong>g where exclusive content or channels are applied as well, so customer loyalty<br />

<strong>in</strong>creases. When <strong>the</strong> customer is loyal, <strong>the</strong> decision mak<strong>in</strong>g process (especially evaluat<strong>in</strong>g<br />

different alternatives for satisfy<strong>in</strong>g a special need) is much easier <strong>and</strong> shorter, spar<strong>in</strong>g time for<br />

o<strong>the</strong>r activities. Accord<strong>in</strong>g to <strong>the</strong> approach <strong>of</strong> Market<strong>in</strong>g 3.0 (Kotler, 2010) some customers<br />

need not just smatter<strong>in</strong>g relationships, but real connections to br<strong>and</strong>s through <strong>the</strong> spiritual<br />

dimension as well.<br />

Through <strong>the</strong> <strong>in</strong>teraction with <strong>the</strong> artist a strong emotional attachment <strong>and</strong> engagement to <strong>the</strong><br />

music icon is evolved. So a fan can be a valuable member <strong>of</strong> a music subculture. Ano<strong>the</strong>r<br />

<strong>in</strong>terest<strong>in</strong>g po<strong>in</strong>t turned out to be important dur<strong>in</strong>g <strong>the</strong> focus group <strong>in</strong>terviews: <strong>the</strong><br />

phenomenon <strong>of</strong> explor<strong>in</strong>g. <strong>The</strong>re is a group <strong>of</strong> consumers who just like to explore new b<strong>and</strong>s<br />

<strong>and</strong> music br<strong>and</strong><strong>in</strong>g could give a relevant platform for it. Not just new icons, but new music<br />

goods <strong>and</strong> br<strong>and</strong>ed products are developed through this stage form<strong>in</strong>g <strong>the</strong> aspirational<br />

emotions towards <strong>the</strong> br<strong>and</strong> <strong>and</strong> <strong>the</strong> b<strong>and</strong>s too – <strong>the</strong>y are not just attached, but already aspire<br />

to be valuable members <strong>of</strong> this exclusive group.<br />

But customers use music for build<strong>in</strong>g <strong>the</strong>ir own personal image as well, so <strong>the</strong>y unconsciously<br />

use <strong>the</strong> method <strong>of</strong> self-br<strong>and</strong><strong>in</strong>g. In <strong>the</strong> experience <strong>and</strong> shar<strong>in</strong>g economy (P<strong>in</strong>e – Gilmore,<br />

1998), emotions <strong>and</strong> different experiences change h<strong>and</strong>s through different concert<br />

19


experiences. <strong>The</strong>se events are depicted <strong>in</strong> social web sites, where comments <strong>and</strong> posts can<br />

build <strong>in</strong>teraction between fans; moreover, <strong>the</strong>y can generate <strong>the</strong>ir own content as well,<br />

demonstrat<strong>in</strong>g <strong>the</strong>ir creative potential <strong>in</strong> a given onl<strong>in</strong>e community.<br />

Interac,on with <strong>the</strong> br<strong>and</strong><br />

Differen,a,on<br />

Exclusivity<br />

Loyalty<br />

Credibility<br />

Simpler decision<br />

mak<strong>in</strong>g<br />

Spiritual<br />

dimension<br />

5. Primary research<br />

Figure 8. Value creation for customers through music br<strong>and</strong><strong>in</strong>g<br />

Interac,on with <strong>the</strong> ar,st<br />

Engagement<br />

Member <strong>of</strong><br />

subculture<br />

Explor<strong>in</strong>g<br />

Aspira,on<br />

Interac,on among fans<br />

Self-­‐<br />

br<strong>and</strong><strong>in</strong>g<br />

Emo,ons Experiences Crea,vity Community<br />

Source: Author’s edition<br />

For <strong>the</strong> deep underst<strong>and</strong><strong>in</strong>g <strong>of</strong> <strong>the</strong> topic it was necessary to conduct a primary research besides<br />

<strong>the</strong> analysis <strong>of</strong> <strong>in</strong>ternational cases. <strong>The</strong> results <strong>of</strong> <strong>the</strong> primary research are demonstrated <strong>in</strong> this<br />

chapter under <strong>the</strong> notice that <strong>the</strong> research is not representative, ma<strong>in</strong>ly focus<strong>in</strong>g on qualitative<br />

methods. Consider<strong>in</strong>g my resources, Hungarian experts <strong>and</strong> <strong>in</strong>habitants were <strong>in</strong>volved <strong>in</strong> <strong>the</strong><br />

primary research, which supported to f<strong>in</strong>alise <strong>the</strong> <strong>the</strong>oretical model about value creation<br />

through music br<strong>and</strong><strong>in</strong>g.<br />

5.1. Methodology<br />

Dur<strong>in</strong>g <strong>the</strong> primary research phase I applied <strong>the</strong> approach <strong>of</strong> exploratory research, which<br />

helped me to def<strong>in</strong>e <strong>the</strong> problem. Dur<strong>in</strong>g <strong>the</strong> focus group <strong>in</strong>terviews I asked four groups –<br />

three Hungarian groups <strong>and</strong> one <strong>in</strong>ternational (<strong>the</strong> last one was conducted onl<strong>in</strong>e because <strong>of</strong><br />

<strong>the</strong> geographical distance). As a result I conducted 12 <strong>in</strong>-depth <strong>in</strong>terviews with music experts<br />

<strong>and</strong> four focus group <strong>in</strong>terviews with 6-7 <strong>in</strong>habitants <strong>in</strong> each group us<strong>in</strong>g projective methods<br />

as well.<br />

5.2. Focus Group Interviews<br />

<strong>The</strong> ma<strong>in</strong> questions <strong>of</strong> focus group <strong>in</strong>terviews covered <strong>the</strong> follow<strong>in</strong>g topics:<br />

20


Figure 9. Question blocks <strong>of</strong> Focus Group Interviews<br />

General a_tude to music <strong>and</strong> music consumpAon behaviour<br />

Decision-­‐mak<strong>in</strong>g situaAon <strong>of</strong> purchas<strong>in</strong>g<br />

Br<strong>and</strong> recall <strong>and</strong> br<strong>and</strong> evaluaAon with exam<strong>in</strong>aAon<br />

<strong>The</strong> def<strong>in</strong>iAon <strong>of</strong> value<br />

Br<strong>and</strong> recall <strong>and</strong> br<strong>and</strong> evaluaAon with exam<strong>in</strong>aAon<br />

Source: Author’s edition<br />

Due to <strong>the</strong> filter questionnaire I could dist<strong>in</strong>guish between ‘dedicated’ <strong>and</strong> ‘neutral’ groups<br />

accord<strong>in</strong>g to <strong>the</strong>ir music consumption behaviour. ‘Dedicated’ group listens to music more<br />

than one hour per day determ<strong>in</strong><strong>in</strong>g music as „<strong>the</strong> most important th<strong>in</strong>g <strong>in</strong> my life, I could not<br />

imag<strong>in</strong>e a day without music”. In <strong>the</strong> meantime, ‘neutral’ persons noted, “… music does not<br />

play a special role <strong>in</strong> my life. Usually I listen to music <strong>in</strong> my fa<strong>the</strong>r’s car <strong>in</strong> <strong>the</strong> weekend.”<br />

Dur<strong>in</strong>g <strong>the</strong> focus group <strong>in</strong>terviews <strong>the</strong>re was a perpetual dist<strong>in</strong>ction <strong>in</strong> answers <strong>and</strong> behaviour<br />

as well among those group members.<br />

Consequently, <strong>the</strong> mean<strong>in</strong>g <strong>of</strong> music was different among groups. ‘Dedicated’ group<br />

mentioned emotions, love, mood, dance <strong>and</strong> expression <strong>of</strong> <strong>the</strong>ir identity (<strong>in</strong> my <strong>in</strong>terpretation<br />

it is a phenomenon <strong>of</strong> music br<strong>and</strong><strong>in</strong>g). <strong>The</strong>se groups mentioned that: “I usually post a video<br />

music on my Facebook site every day, because I want to let people know, what k<strong>in</strong>d <strong>of</strong> person<br />

I am. So music is a way to express myself <strong>in</strong> a larger community”. <strong>The</strong> ‘neutral’ group was<br />

not that enthusiastic about music, although <strong>the</strong>y mentioned that through <strong>the</strong>ir <strong>of</strong>fl<strong>in</strong>e social<br />

life (parties, events) music is unavoidable <strong>and</strong> “makes <strong>the</strong> mood” – conclud<strong>in</strong>g that <strong>the</strong>y are<br />

passively <strong>in</strong>volved <strong>in</strong> <strong>the</strong> relationship between music <strong>and</strong> consumers.<br />

In decision mak<strong>in</strong>g process <strong>of</strong> purchas<strong>in</strong>g people surrounded by respondents play a crucial<br />

role <strong>in</strong> forms <strong>of</strong> op<strong>in</strong>ion leaders as family <strong>and</strong> friends: “family <strong>and</strong> my friends are <strong>the</strong> most<br />

important actors <strong>in</strong> my life <strong>and</strong> <strong>the</strong>ir op<strong>in</strong>ion about a product is essential for me”. However,<br />

dur<strong>in</strong>g <strong>the</strong> conversation I could conclude that most <strong>of</strong> <strong>the</strong>m have an aspiration group where<br />

<strong>the</strong>y want to suit, so different subcultural tra<strong>its</strong> are over valuated <strong>in</strong> <strong>the</strong>ir life. One <strong>of</strong> <strong>the</strong><br />

respondents said: “I usually check <strong>the</strong> underground music scene <strong>and</strong> if <strong>the</strong>re is someth<strong>in</strong>g<br />

different <strong>of</strong>fered (new music video or new fashion store), I will probably click on it.” In<br />

addition, <strong>the</strong> <strong>in</strong>fluenc<strong>in</strong>g effect <strong>of</strong> <strong>the</strong>ir icons like musicians, actors or sportsmen were<br />

mentioned <strong>in</strong> terms <strong>of</strong> purchas<strong>in</strong>g decisions – “I like to be updated about <strong>the</strong> lives <strong>and</strong><br />

21


pr<strong>of</strong>essional work <strong>of</strong> my favourite artists or sportsmen. I already have liked <strong>the</strong>ir Facebook<br />

site or <strong>the</strong>ir blog activity.”<br />

Def<strong>in</strong><strong>in</strong>g value was a challenge first for respondents, s<strong>in</strong>ce too many approaches came to<br />

<strong>the</strong>ir m<strong>in</strong>d. Firstly, different spontaneous associations were expressed like ‘family’, ‘friends’,<br />

‘travel’, ‘hobby’, ‘mobile phone’ <strong>and</strong> ‘music’ <strong>and</strong> o<strong>the</strong>r relationships. All different<br />

dimensions were detailed as <strong>the</strong> follow<strong>in</strong>g: human relationships are <strong>the</strong> factors, which provide<br />

<strong>the</strong> basic social needs like emotional bond or safety. <strong>The</strong> most important elements were<br />

<strong>in</strong>tangible assets such as experiences with friends that can form relationships. Material factors<br />

were mentioned for hard factors such as safety <strong>and</strong> wealthfare. “Without money, you cannot<br />

really provide yourself with relevant values, s<strong>in</strong>ce you have to eat, you have to live<br />

somewhere.” Fur<strong>the</strong>rmore, due to <strong>the</strong> sample <strong>of</strong> students knowledge <strong>and</strong> life-long learn<strong>in</strong>g<br />

even <strong>in</strong> case <strong>of</strong> hobbies were mentioned as crucial determ<strong>in</strong>ants <strong>in</strong> <strong>the</strong>ir personal identity <strong>and</strong><br />

development. So <strong>the</strong> value is summed up as <strong>the</strong> follow<strong>in</strong>g accord<strong>in</strong>g to respondents:<br />

relationships, experiences, self-expressive <strong>and</strong> self-def<strong>in</strong><strong>in</strong>g activities <strong>and</strong> lastly as a material<br />

source, but significantly dom<strong>in</strong>ant factor for basic needs: money. This result enhances <strong>the</strong><br />

importance <strong>of</strong> emotional br<strong>and</strong><strong>in</strong>g <strong>of</strong> Gobé (2001).<br />

About purchas<strong>in</strong>g motivation associations with impulsive purchase were mentioned, where<br />

impressions, emotions played <strong>the</strong> biggest role. One <strong>of</strong> <strong>the</strong> respondents stated: “Usually I go to<br />

<strong>the</strong> supermarket for basic products like milk <strong>and</strong> bread, but when I came out from <strong>the</strong> store, I<br />

realize that I have Haribo, Coca-Cola <strong>in</strong> my basket as well…” In case <strong>of</strong> electronic goods<br />

besides functional expectations, <strong>the</strong> br<strong>and</strong> <strong>and</strong> prestige accompanied by lifestyle<br />

characteristics were essential. For <strong>in</strong>stance, regard<strong>in</strong>g Apple <strong>the</strong> br<strong>and</strong> personality provides<br />

added value for customers: “Apple is a cool br<strong>and</strong> which reflects your personality as well, not<br />

just your status”.<br />

Perceptions <strong>of</strong> br<strong>and</strong>s were ranked on a wide variety <strong>of</strong> scale: design, commercials <strong>and</strong><br />

slogans were top allusions, meanwhile functionality <strong>and</strong> social media applications were<br />

second. As I asked about any examples <strong>of</strong> social market<strong>in</strong>g activities <strong>the</strong>y mentioned one <strong>of</strong><br />

<strong>the</strong> social campaigns <strong>of</strong> Nike: after a post on social media site <strong>the</strong> first arrivers to <strong>the</strong> shop<br />

could w<strong>in</strong> a pair <strong>of</strong> shoes.<br />

<strong>Music</strong> br<strong>and</strong><strong>in</strong>g as a <strong>the</strong>ory was still uncovered for respondents, although <strong>the</strong>y visualized a<br />

picture about it <strong>in</strong> <strong>the</strong>ir m<strong>in</strong>d. Respondents could associatie music <strong>in</strong> commercials towards <strong>the</strong><br />

mention <strong>of</strong> Coke Club, which are obious manifestations <strong>of</strong> music br<strong>and</strong><strong>in</strong>g fields <strong>in</strong> Hungary<br />

<strong>and</strong> <strong>in</strong>ternationally as well. “Coke Club (previously Coca-Cola Beach House) was <strong>the</strong> venue<br />

22


<strong>of</strong> summer parties <strong>in</strong> a summer city <strong>of</strong> Hungary – everyone knew if someth<strong>in</strong>g was organized<br />

by Coke Club, <strong>the</strong> event was successful <strong>and</strong> on a high level.” In <strong>the</strong>ir perception music is an<br />

essential part <strong>of</strong> advertis<strong>in</strong>g, although sometimes <strong>the</strong>y could not percieve <strong>the</strong> relationship<br />

between a br<strong>and</strong> <strong>and</strong> a musician like <strong>in</strong> case <strong>of</strong> Beyoncé <strong>and</strong> Pepsi. Ano<strong>the</strong>r example was<br />

mentioned regard<strong>in</strong>g music br<strong>and</strong><strong>in</strong>g: a Sony Bravia commercial accompanied with <strong>the</strong> music<br />

<strong>of</strong> José Gonsales. “<strong>The</strong> audiovisual elements <strong>of</strong> <strong>the</strong> ad totally fasc<strong>in</strong>ated me: <strong>the</strong> bounc<strong>in</strong>g<br />

balls <strong>and</strong> <strong>the</strong> background music were just a perfect match” One <strong>of</strong> <strong>the</strong> respondents enhanced<br />

<strong>the</strong> phenomenon <strong>of</strong> explor<strong>in</strong>g: “… <strong>and</strong> I loved <strong>the</strong> fact that I could get <strong>in</strong>troduced to a new<br />

artist <strong>in</strong> that way. Usually I am surf<strong>in</strong>g on <strong>the</strong> <strong>in</strong>ternet to check out new b<strong>and</strong>s <strong>and</strong> it was such<br />

an easier way to listen to someth<strong>in</strong>g new.” Although, when I asked about <strong>the</strong> fur<strong>the</strong>r career <strong>of</strong><br />

<strong>the</strong> musician, respondents were perplexed, s<strong>in</strong>ce <strong>the</strong>y have not followed his career <strong>in</strong> <strong>the</strong> last<br />

few years. This can show a short-term approach <strong>of</strong> music br<strong>and</strong><strong>in</strong>g which is not beneficial for<br />

value creation <strong>in</strong> a strategic sense.<br />

As a creative element I played different audio music parts ask<strong>in</strong>g whe<strong>the</strong>r <strong>the</strong> subjects can<br />

associate to a br<strong>and</strong>. <strong>The</strong> technique was <strong>the</strong> follow<strong>in</strong>g: after play<strong>in</strong>g 15 sec from <strong>the</strong> given<br />

song I asked about <strong>the</strong> associations <strong>and</strong> when <strong>the</strong>re was no correct answer I gave some answer<br />

possibilities until <strong>the</strong>y f<strong>in</strong>d out <strong>the</strong> right br<strong>and</strong>. <strong>The</strong> follow<strong>in</strong>g music songs were played<br />

match<strong>in</strong>g <strong>the</strong> given br<strong>and</strong>s:<br />

Table 1: Rank<strong>in</strong>g <strong>of</strong> Br<strong>and</strong> <strong>and</strong> <strong>Music</strong> Relationships accord<strong>in</strong>g to Time Spent on Task<br />

Company <strong>Music</strong>ian Song Rank<br />

(Hungarian)<br />

Rank<br />

(International)<br />

Túró Rudi (for Hungarians only) Quimby Láss ezer csodát! 1 -­‐<br />

Coca-­‐Cola Natasha Bed<strong>in</strong>gfield Shake Up Christmas 2 1<br />

Sony Bravia José Gonzales Heartbeats 3 8<br />

Chrysler Jay-­‐Z Heart <strong>of</strong> <strong>the</strong> City 4 2<br />

Micros<strong>of</strong>t Madonna Ray <strong>of</strong> Light 5 7<br />

Absolut Cee Lo Green Distilled 6 4<br />

Coca-­‐Cola David Guetta 7 3<br />

Blackberry U2 Blackberry Loves U2 8 9<br />

Google Chrome OK Pilobolus 9 5<br />

Nokia deadmau5 10 6<br />

Kodak Lady Gaga Poker Face 11 10<br />

Source: Author’s edition<br />

‘Neutral’ persons could not match any <strong>of</strong> <strong>the</strong> br<strong>and</strong>s to b<strong>and</strong>s mentioned, <strong>the</strong>y usually said: “I<br />

do not know, please take <strong>the</strong> next question”, meanwhile ‘dedicated’ persons wanted to f<strong>in</strong>d<br />

out <strong>the</strong> results. Accord<strong>in</strong>g to <strong>the</strong> time subjects spent on f<strong>in</strong>d<strong>in</strong>g <strong>the</strong> right answer <strong>the</strong> rank<strong>in</strong>g is<br />

depicted <strong>in</strong> Table 1. <strong>The</strong> results were <strong>the</strong> same among <strong>in</strong>ternational <strong>and</strong> local groups. In<br />

23


general, it can be noted that respondents could not connect br<strong>and</strong>s with music spontaneously.<br />

Coca-Cola was associated with b<strong>and</strong>s <strong>the</strong> most successfully, which might be a result <strong>of</strong><br />

emotional br<strong>and</strong><strong>in</strong>g strategy related to music. Among Hungarian groups <strong>the</strong> local br<strong>and</strong> Túró<br />

Rudi was <strong>the</strong> most well-known sonically where patriot feel<strong>in</strong>gs <strong>and</strong> consumer ethnocentrism<br />

could play a crucial role. (Herskov<strong>its</strong>, 1948) Some <strong>of</strong> <strong>the</strong> respondents said that one <strong>of</strong> <strong>the</strong>ir<br />

favourite b<strong>and</strong>s is Quimby played <strong>in</strong> <strong>the</strong> commercial <strong>of</strong> Túró Rudi that is why <strong>the</strong>y could<br />

recall <strong>the</strong> commercial easier as well.<br />

5.3. In-­‐depth Interviews<br />

For draw<strong>in</strong>g <strong>the</strong> model <strong>of</strong> value creation through music br<strong>and</strong><strong>in</strong>g, <strong>in</strong>-depth <strong>in</strong>terviews<br />

conducted with practitioners were essential for gett<strong>in</strong>g deeper <strong>in</strong>sights for <strong>the</strong> subject. I have<br />

successfully managed to <strong>in</strong>terview people from <strong>the</strong> artist area (4 musicians), from <strong>the</strong> media<br />

sector (journalist, radio speaker) <strong>and</strong> from management perspective as well (corporate <strong>and</strong><br />

music management persons). Overall I reached 12 practitioners <strong>and</strong> <strong>in</strong> average I spent one<br />

hour for an <strong>in</strong>terview. For <strong>the</strong> representatives <strong>of</strong> different fields <strong>of</strong> music br<strong>and</strong><strong>in</strong>g I designed<br />

more <strong>in</strong>terview guidel<strong>in</strong>es.<br />

Through <strong>the</strong> <strong>in</strong>-depth <strong>in</strong>terviews I could ga<strong>in</strong> relevant <strong>and</strong> deeper <strong>in</strong>sights <strong>in</strong> <strong>the</strong> field <strong>of</strong> music<br />

br<strong>and</strong><strong>in</strong>g, moreover about <strong>the</strong> Hungarian music scene. <strong>The</strong> Hungarian <strong>and</strong> <strong>in</strong>ternational music<br />

trends were uncovered, where <strong>the</strong> approach <strong>of</strong> music br<strong>and</strong><strong>in</strong>g <strong>and</strong> <strong>its</strong> value for musicians,<br />

br<strong>and</strong>s <strong>and</strong> consumers were touched followed by future opportunities as well.<br />

Interviewees all mentioned <strong>the</strong> same tendencies regard<strong>in</strong>g <strong>the</strong> development <strong>of</strong> music<br />

<strong>in</strong>dustry: <strong>in</strong>novative <strong>and</strong> mobile strategies can be successful <strong>in</strong> <strong>the</strong> chang<strong>in</strong>g music <strong>in</strong>dustry.<br />

<strong>The</strong>y enhanced <strong>the</strong> role <strong>of</strong> social media (YouTube, Facebook, MySpace), which are suitable<br />

for shar<strong>in</strong>g music videos creat<strong>in</strong>g musical communities <strong>and</strong> experiences. All <strong>of</strong> <strong>the</strong>m<br />

evaluated <strong>the</strong> Hungarian music scene underdeveloped compared to Western-European<br />

countries by 4-5 years.<br />

Dur<strong>in</strong>g <strong>the</strong> <strong>in</strong>terviews <strong>the</strong> def<strong>in</strong>ition <strong>of</strong> music br<strong>and</strong><strong>in</strong>g had to be grounded <strong>in</strong> <strong>the</strong> first<br />

moments even <strong>in</strong> case <strong>of</strong> experts as well, s<strong>in</strong>ce <strong>the</strong>re is no general def<strong>in</strong>ition <strong>in</strong> <strong>the</strong> literature<br />

or practical area. However, several examples appeared confirm<strong>in</strong>g <strong>the</strong> relevance <strong>of</strong> <strong>the</strong> wider<br />

approach <strong>of</strong> music br<strong>and</strong><strong>in</strong>g. One <strong>of</strong> <strong>the</strong> management th<strong>in</strong>ks that “music is applied by<br />

<strong>in</strong>tutions <strong>in</strong> br<strong>and</strong><strong>in</strong>g strategy nowadays” <strong>and</strong> <strong>in</strong> his op<strong>in</strong>ion it can be <strong>the</strong> root <strong>of</strong> many<br />

unsuccessful attempts: <strong>the</strong>re is no strategical th<strong>in</strong>k<strong>in</strong>g beh<strong>in</strong>d <strong>the</strong> activities. For <strong>in</strong>stance, he<br />

mentioned a Hungarian experiment <strong>of</strong> Jack Daniels, which had <strong>the</strong> aim to shot a movie<br />

24


connected to <strong>the</strong> br<strong>and</strong> with rock stars. <strong>The</strong> movie was removed from c<strong>in</strong>ema programmes<br />

after two weeks. <strong>The</strong> fail <strong>of</strong> <strong>the</strong> movie was not clearly def<strong>in</strong>ed, but <strong>the</strong> respondent mentioned<br />

<strong>the</strong> weak market<strong>in</strong>g communication <strong>and</strong> weak association <strong>of</strong> br<strong>and</strong> <strong>and</strong> musicians.<br />

Ano<strong>the</strong>r example was enhanced as a strategic approach <strong>of</strong> music br<strong>and</strong><strong>in</strong>g: Unlimited<br />

<strong>Music</strong> service <strong>of</strong> Vodafone, which enables to subscribe for legal music download<strong>in</strong>g.<br />

Fur<strong>the</strong>rmore, Coke Club as a music br<strong>and</strong><strong>in</strong>g phenomenon was mentioned <strong>in</strong> <strong>the</strong> context <strong>of</strong><br />

music content service <strong>and</strong> market<strong>in</strong>g campaigns. One <strong>of</strong> <strong>the</strong> <strong>in</strong>terviewees highlighted <strong>the</strong> “age<br />

<strong>of</strong> <strong>in</strong>stant music br<strong>and</strong>s <strong>and</strong> artists” – <strong>the</strong> so-called shoot<strong>in</strong>g stars, which will be famous<br />

through a talent show or any commercial music, but <strong>the</strong>ir fame lasts only for a short period.<br />

<strong>The</strong>se k<strong>in</strong>ds <strong>of</strong> musicians should be avoided <strong>in</strong> music br<strong>and</strong><strong>in</strong>g strategy, s<strong>in</strong>ce it is not<br />

successful on a long-term basis.<br />

Regard<strong>in</strong>g <strong>the</strong> social goal <strong>of</strong> music br<strong>and</strong><strong>in</strong>g ano<strong>the</strong>r op<strong>in</strong>ion appeared: through music<br />

education <strong>and</strong> improvement <strong>of</strong> musical culture br<strong>and</strong>s are able to connect genu<strong>in</strong>e value<br />

through music br<strong>and</strong><strong>in</strong>g. In Sweden <strong>the</strong> quality <strong>of</strong> music education is positively different from<br />

Hungarian one. Accord<strong>in</strong>g to one <strong>of</strong> <strong>the</strong> <strong>in</strong>terviewees: “I was astonished when I had faced<br />

with <strong>the</strong> fact that schools <strong>in</strong> Sweden are well-ecquipped with different <strong>in</strong>struments, separate<br />

music rooms <strong>and</strong> teachers are well-educated musicians as well.” Ano<strong>the</strong>r management<br />

perspective enhanced <strong>the</strong> field <strong>of</strong> music management: “<strong>the</strong> support<strong>in</strong>g approach <strong>and</strong> music<br />

management education is still miss<strong>in</strong>g <strong>in</strong> Hungary”, which could teach experts how to use<br />

music br<strong>and</strong><strong>in</strong>g as a strategic tool. In her op<strong>in</strong>ion <strong>the</strong> cooperation between br<strong>and</strong>s <strong>and</strong> artists<br />

cannot be conscious until <strong>the</strong>re are well-educated experts who are able to identify <strong>the</strong> identity<br />

<strong>of</strong> a br<strong>and</strong> <strong>and</strong> chos<strong>in</strong>g <strong>the</strong> best fitt<strong>in</strong>g artist to it.<br />

If a br<strong>and</strong> chooses <strong>the</strong> way <strong>of</strong> cultural mission, it is able to create value for music education<br />

<strong>and</strong> traditional values. <strong>The</strong> Culture Manager <strong>of</strong> Red Bull Hungary enhanced <strong>the</strong> importance <strong>of</strong><br />

music <strong>in</strong> Red Bull’s br<strong>and</strong><strong>in</strong>g strategy demonstrat<strong>in</strong>g this aspect. He described <strong>the</strong> music<br />

strategy <strong>of</strong> Red Bull st<strong>and</strong><strong>in</strong>g on three pillars: events organized by Red Bull (not sponsored),<br />

target<strong>in</strong>g op<strong>in</strong>ion leaders <strong>and</strong> third party which is not so relevant dur<strong>in</strong>g <strong>the</strong> “egoist<br />

market<strong>in</strong>g” by creat<strong>in</strong>g orig<strong>in</strong>al Red Bull platforms <strong>in</strong>stead <strong>of</strong> sponsorship. In <strong>the</strong> strategic<br />

alliance <strong>of</strong> musicians it is important that <strong>the</strong>ir personal characteristics are <strong>in</strong> harmony with <strong>the</strong><br />

characteristics <strong>of</strong> Red Bull (creative, enterta<strong>in</strong><strong>in</strong>g, extreme), moreover to build a trustful<br />

partnership with artists: “Trust <strong>and</strong> two-sided communication are essential, because no one<br />

knows from whom exactly <strong>the</strong> creative <strong>and</strong> successful ideas are com<strong>in</strong>g <strong>and</strong> this attitude<br />

improves <strong>the</strong> quality <strong>of</strong> cooperation <strong>and</strong> <strong>its</strong> results.“ In addition, dur<strong>in</strong>g <strong>the</strong> “Made <strong>in</strong> Garage”<br />

25


concept Red Bull supports new b<strong>and</strong>s to create <strong>the</strong>ir first music video by “giv<strong>in</strong>g <strong>the</strong>m<br />

w<strong>in</strong>gs”. Several beg<strong>in</strong>ner b<strong>and</strong>s turned out to be popular after a partnership with Red Bull <strong>and</strong><br />

<strong>the</strong> ma<strong>in</strong> aims <strong>of</strong> <strong>the</strong> br<strong>and</strong> is to support local music scenes with<strong>in</strong> global br<strong>and</strong><strong>in</strong>g strategy.<br />

What platforms did Red Bull use <strong>in</strong> <strong>the</strong> implemention <strong>of</strong> a successful music br<strong>and</strong><strong>in</strong>g<br />

strategy? Local traditions <strong>and</strong> cultural heritage gave an outst<strong>and</strong><strong>in</strong>g opportunity for<br />

<strong>in</strong>vention <strong>of</strong> events called ‘Liszt Remix’ <strong>and</strong> ‘Pilvaker’ where traditional artefacts from Liszt<br />

<strong>and</strong> literature poems from 1848 were redef<strong>in</strong>ed. “<strong>The</strong> objective <strong>of</strong> <strong>the</strong>se events was to create<br />

value by respect<strong>in</strong>g Hungarian roots <strong>of</strong>fer<strong>in</strong>g relevant content for audience <strong>and</strong> for musicians<br />

as well”, so <strong>the</strong>y could identify with <strong>the</strong> event <strong>and</strong> <strong>in</strong>directly with <strong>the</strong> br<strong>and</strong> easily. <strong>The</strong><br />

culture manager suggested he would have never believed that after <strong>the</strong> unexpected hit <strong>of</strong> Liszt<br />

Remix he could revive ano<strong>the</strong>r success story, but <strong>the</strong> history did not just repeat, but surpass it<br />

<strong>in</strong> numbers at least: more than 300 000 people watched <strong>the</strong> <strong>in</strong>tro video onl<strong>in</strong>e <strong>in</strong> three weeks.<br />

Red Bull improved <strong>the</strong> Hungarian music scene by giv<strong>in</strong>g artists an opportunity to be different<br />

<strong>and</strong> make difference. In <strong>the</strong> <strong>in</strong>terpretation <strong>of</strong> Balázs Fehér, <strong>the</strong> soloist <strong>of</strong> Carbonfools (one <strong>of</strong><br />

<strong>the</strong> b<strong>and</strong>s participated <strong>in</strong> ‘Liszt Remix’) <strong>the</strong> objective was reached, s<strong>in</strong>ce Balázs said: “It was<br />

such an honour to take part <strong>in</strong> this event. We enjoyed so much to work with Liszt’s art <strong>and</strong> <strong>the</strong><br />

venue – Uránia <strong>the</strong>atre – was a great choice as well to lift <strong>the</strong> event to a higher level.<br />

Fur<strong>the</strong>rmore, <strong>the</strong> partnership with Red Bull is beneficial – our fans share <strong>the</strong> same values <strong>and</strong><br />

we try to f<strong>in</strong>d <strong>the</strong> best ways to satisfy <strong>the</strong>m. It is good for <strong>the</strong> br<strong>and</strong>, s<strong>in</strong>ce our b<strong>and</strong> can lend<br />

<strong>the</strong>m credibility, as long as we can merge with Red Bull’s platforms <strong>and</strong> strategy”.<br />

Talent shows were <strong>of</strong> crucial importance from a management perspective as well, like <strong>in</strong> case<br />

<strong>of</strong> Borsodi, <strong>the</strong> Hungarian beer. <strong>The</strong> br<strong>and</strong> used explor<strong>in</strong>g strategy <strong>in</strong> order to embrace<br />

unknown talents <strong>and</strong> <strong>the</strong> br<strong>and</strong> association was significantly better reach<strong>in</strong>g <strong>the</strong> group <strong>of</strong><br />

op<strong>in</strong>ion leaders, <strong>the</strong> musicians. However, <strong>the</strong> strategic toolset <strong>and</strong> <strong>its</strong> implementation were not<br />

undoubtfully perfect, s<strong>in</strong>ce f<strong>in</strong>ancial support is not enough for explor<strong>in</strong>g strategy: a mentor<strong>in</strong>g<br />

program should developed <strong>in</strong> order to f<strong>in</strong>d <strong>the</strong>ir way <strong>in</strong> <strong>the</strong> highly competitive music market.<br />

Accord<strong>in</strong>g to one <strong>of</strong> <strong>the</strong> musicians climb<strong>in</strong>g on <strong>the</strong> career ladder: „Br<strong>and</strong>s are not‘cows’ for<br />

us represent<strong>in</strong>g a f<strong>in</strong>ancial resource – we need <strong>the</strong>m for improv<strong>in</strong>g our tools <strong>and</strong> story, <strong>and</strong> to<br />

give some exclusive content for our valued fans. Without <strong>the</strong>m we would no one.”<br />

In musicians’ op<strong>in</strong>ion “b<strong>and</strong>s need any k<strong>in</strong>d <strong>of</strong> Maecenas, but still artists have to carefully<br />

chose br<strong>and</strong> partners, because musicians are able to lose <strong>the</strong>ir fans as a result <strong>of</strong> a bad<br />

partnership with a br<strong>and</strong>”. If <strong>the</strong> musician has <strong>its</strong> own unique style, it cannot be formed<br />

accord<strong>in</strong>g to <strong>the</strong> goals <strong>of</strong> br<strong>and</strong>s, it is more likely suggested to f<strong>in</strong>d ano<strong>the</strong>r match<strong>in</strong>g br<strong>and</strong> to<br />

26


<strong>the</strong> musicians’ portfolio enhanc<strong>in</strong>g <strong>the</strong> relevance <strong>of</strong> <strong>the</strong> image transfer dimension <strong>of</strong><br />

cooperation strategies.<br />

Overall, all <strong>in</strong>terviewees agreed on <strong>the</strong> presumption that music br<strong>and</strong><strong>in</strong>g besides a new<br />

f<strong>in</strong>ancial source for musicians, appears as a strategic tool for creat<strong>in</strong>g genu<strong>in</strong>e value <strong>and</strong><br />

unique content for customers. In <strong>the</strong> op<strong>in</strong>ion <strong>of</strong> <strong>in</strong>terviewees, music br<strong>and</strong><strong>in</strong>g will be more<br />

<strong>and</strong> more important <strong>in</strong> br<strong>and</strong>s’ life, accompanied with improved music management education<br />

as well.<br />

5.4. Summary <strong>of</strong> Primary Research<br />

Focus Group Interviews<br />

'Dedicated' adn 'neutral' groups were<br />

idenAfied accord<strong>in</strong>g to music consumpAon<br />

In decision-­‐mak<strong>in</strong>g process op<strong>in</strong>ion leaders<br />

<strong>and</strong> aspiraAon groups were crucial<br />

Value is olen symbolisAc: emoAons,<br />

relaAonships, experiences<br />

PercepAons <strong>of</strong> br<strong>and</strong>s are highly connected<br />

to emoAons <strong>and</strong> iconic br<strong>and</strong><strong>in</strong>g<br />

<strong>Music</strong> br<strong>and</strong><strong>in</strong>g was associated with music <strong>in</strong><br />

commercials or concerts -­‐ explor<strong>in</strong>g strategy<br />

created value<br />

'Dedicated' group could associate br<strong>and</strong>s<br />

with arAsts easier<br />

6. Conclusion<br />

Figure 10. Summary <strong>of</strong> Primary Research<br />

Source: Author’s edition<br />

<strong>Music</strong> <strong>and</strong> br<strong>and</strong><strong>in</strong>g has had <strong>the</strong>ir cross-section over a long time ago, but <strong>the</strong> strategic approach <strong>of</strong><br />

music br<strong>and</strong><strong>in</strong>g is still <strong>in</strong> <strong>its</strong> <strong>in</strong>fancy accord<strong>in</strong>g to experts. However, <strong>the</strong> positive effects <strong>and</strong> wide<br />

variety <strong>of</strong> music usage was described <strong>in</strong> forms <strong>of</strong> cooperation strategies (association, participation,<br />

explor<strong>in</strong>g, image transfer, content service), <strong>the</strong> popularity <strong>of</strong> music br<strong>and</strong><strong>in</strong>g is still very low,<br />

which can be a cause <strong>of</strong> subjective efficiency measurements. Nowadays, due to different onl<strong>in</strong>e<br />

analysis tools, this aspect can be more <strong>and</strong> more quantified, which is a desired characteristic for a<br />

management leader.<br />

In-­‐depth Interviews<br />

Mobile <strong>and</strong> <strong>in</strong>novaAve strategies could be<br />

successful <strong>in</strong> chang<strong>in</strong>g music <strong>in</strong>dustry<br />

Def<strong>in</strong>iAon <strong>of</strong> music br<strong>and</strong><strong>in</strong>g was not<br />

transparent <strong>and</strong> united<br />

<strong>Strategic</strong> approach <strong>of</strong> music br<strong>and</strong><strong>in</strong>g is<br />

successful -­‐ e.g. Coke Club<br />

Social goal <strong>of</strong> music br<strong>and</strong><strong>in</strong>g plays more an<br />

more an important role -­‐ cultural mission <strong>of</strong><br />

Red Bull<br />

Talent shows help all actors to create value <strong>in</strong><br />

form <strong>of</strong> explor<strong>in</strong>g strategy<br />

Image transfer is essenAal <strong>in</strong> choice <strong>of</strong> music<br />

br<strong>and</strong><strong>in</strong>g partners<br />

27


<strong>Music</strong> is a fundamental element <strong>in</strong> our lives – as accord<strong>in</strong>g to <strong>the</strong> dedicated group <strong>of</strong> my primary<br />

research revealed. Although, we experience music <strong>in</strong> different ways, one basis idea is <strong>the</strong> same:<br />

music evokes emotions <strong>and</strong> helps to underst<strong>and</strong> a message through <strong>its</strong> global language. <strong>The</strong>refore,<br />

music appears as an essential market<strong>in</strong>g <strong>and</strong> br<strong>and</strong><strong>in</strong>g tool, but it can give more than just a means<br />

to <strong>the</strong> goal. A whole br<strong>and</strong><strong>in</strong>g strategy can be built on music where music br<strong>and</strong><strong>in</strong>g can <strong>of</strong>fer<br />

customers emotions, experiences, exclusivity <strong>and</strong> engagement. (Heartbeats, 2009)<br />

As a result, it can be stated that all actors benefit from music br<strong>and</strong><strong>in</strong>g <strong>in</strong> a different way. <strong>The</strong><br />

value creation mechanism <strong>of</strong> music br<strong>and</strong><strong>in</strong>g is complex, s<strong>in</strong>ce <strong>the</strong>re are three ma<strong>in</strong> actors<br />

<strong>in</strong>teract<strong>in</strong>g with each o<strong>the</strong>r. On one h<strong>and</strong>, musicians are able to <strong>in</strong>crease <strong>the</strong>ir awareness through<br />

music br<strong>and</strong><strong>in</strong>g augment<strong>in</strong>g <strong>the</strong>ir fan base, moreover, <strong>the</strong>ir br<strong>and</strong> image could be altered <strong>in</strong> a<br />

positive way as well through <strong>the</strong> image transfer effect demonstrated <strong>in</strong> several case studies.<br />

From <strong>the</strong> <strong>in</strong>-depth <strong>in</strong>terviews fur<strong>the</strong>r values were considered as well: <strong>in</strong>teraction with fans is<br />

supported <strong>and</strong> musicians extremely value <strong>the</strong> dimension <strong>of</strong> fan build<strong>in</strong>g.<br />

In case <strong>of</strong> br<strong>and</strong>s <strong>the</strong> value creation mechanism is much more complex. Firstly, three ma<strong>in</strong><br />

steps are enabled: <strong>the</strong> strategic <strong>in</strong>tegration, communication <strong>and</strong> br<strong>and</strong> image. <strong>Strategic</strong><br />

<strong>in</strong>tegration conta<strong>in</strong>s differentiation, <strong>in</strong>novation, loyalty <strong>and</strong> long-term th<strong>in</strong>k<strong>in</strong>g as most<br />

important values for br<strong>and</strong>s. Communication is improved <strong>in</strong> an emotional <strong>and</strong> genu<strong>in</strong>e way –<br />

br<strong>and</strong>s are able to develop <strong>the</strong>ir br<strong>and</strong> image to a Lovemark <strong>of</strong>fer<strong>in</strong>g exclusive content <strong>and</strong><br />

iconic br<strong>and</strong><strong>in</strong>g.<br />

Customer-centric value is analyzed by three different dimensions: <strong>in</strong>teraction between br<strong>and</strong>,<br />

musician <strong>and</strong> o<strong>the</strong>r customers. Through <strong>the</strong> <strong>in</strong>teraction between br<strong>and</strong>s <strong>the</strong> purchas<strong>in</strong>g<br />

decision is much easier for customers, s<strong>in</strong>ce <strong>the</strong> perceived quality <strong>and</strong> emotional bond<br />

provides a certa<strong>in</strong> level <strong>of</strong> trust. Due to <strong>the</strong> <strong>in</strong>teraction with musicians customers can be a<br />

member <strong>of</strong> an aspiration group or a musical subgroup support<strong>in</strong>g <strong>the</strong> communication with<br />

o<strong>the</strong>r fans as well. Customers can use music as a personal <strong>and</strong> self-br<strong>and</strong><strong>in</strong>g tool – music<br />

br<strong>and</strong><strong>in</strong>g can give <strong>the</strong> means for this objective <strong>in</strong> forms <strong>of</strong> explor<strong>in</strong>g <strong>and</strong> participatory strategy<br />

as well.<br />

7. Summary<br />

<strong>The</strong> <strong>the</strong>ory <strong>of</strong> br<strong>and</strong><strong>in</strong>g has been developed from a rational approach <strong>of</strong> <strong>the</strong> product functions<br />

until <strong>the</strong> more subjective dimension <strong>of</strong> perceptions where emotions play a crucical role. So,<br />

<strong>the</strong> def<strong>in</strong>ition <strong>of</strong> Lovemarks (2004) was born, which conta<strong>in</strong> <strong>the</strong> phenomenon <strong>of</strong> iconic<br />

br<strong>and</strong><strong>in</strong>g as well.<br />

28


After I def<strong>in</strong>ed <strong>the</strong> ma<strong>in</strong> def<strong>in</strong>itions <strong>in</strong> <strong>the</strong> Literature Background, <strong>the</strong> strategy focus appeared<br />

<strong>in</strong> this paper. I showed how music is able to get <strong>in</strong>volved <strong>in</strong> <strong>the</strong> br<strong>and</strong><strong>in</strong>g strategy, how <strong>its</strong><br />

process should be implemented idealistically. As a result, I differentiated ten steps for process<br />

<strong>of</strong> music br<strong>and</strong><strong>in</strong>g strategy <strong>and</strong> four methods <strong>of</strong> cooperation between br<strong>and</strong>s an artists<br />

comb<strong>in</strong>ed with content service market<strong>in</strong>g <strong>in</strong> an overall perspective.<br />

Before I demonstrated <strong>the</strong> primary research, <strong>the</strong> value creation mechanism <strong>of</strong> music br<strong>and</strong><strong>in</strong>g<br />

was concluded provid<strong>in</strong>g value for all actors: musicians, br<strong>and</strong>s <strong>and</strong> customers. All three areas<br />

were depicted <strong>in</strong> dist<strong>in</strong>guished figures <strong>in</strong> order to analyse <strong>the</strong> value creation mechanism <strong>of</strong> all<br />

segments. As a result, it can be stated that all actors benefit from music br<strong>and</strong><strong>in</strong>g <strong>in</strong> a different<br />

way. <strong>Music</strong>ians can <strong>in</strong>crease <strong>the</strong>ir awareness <strong>and</strong> fan base besides f<strong>in</strong>ancial advantages. <strong>The</strong><br />

value creation mechanism <strong>of</strong> music br<strong>and</strong><strong>in</strong>g is much more complex for br<strong>and</strong>s, where <strong>the</strong><br />

strategic <strong>in</strong>tegration is <strong>the</strong> most accentuated one besides affect<strong>in</strong>g <strong>the</strong> communication <strong>of</strong> a<br />

br<strong>and</strong> by <strong>in</strong>fluenc<strong>in</strong>g <strong>the</strong> br<strong>and</strong> image as well. For customers, not just musicians <strong>and</strong> br<strong>and</strong>s<br />

appear as an actor <strong>in</strong> <strong>the</strong> music br<strong>and</strong><strong>in</strong>g process, but o<strong>the</strong>r customers as well, which <strong>the</strong>y can<br />

<strong>in</strong>teract <strong>in</strong> real time due to an effective music br<strong>and</strong><strong>in</strong>g strategy. As a result, through <strong>the</strong><br />

<strong>in</strong>teraction with <strong>the</strong> artist customers can build up to <strong>the</strong> community <strong>of</strong> loyal fans, where<br />

strong emotional attachment <strong>and</strong> engagement to <strong>the</strong> music icon is evolved. So a fan can be a<br />

valuable member <strong>of</strong> a music subculture supported by <strong>the</strong> phenomenon <strong>of</strong> self-br<strong>and</strong><strong>in</strong>g<br />

through music.<br />

After depict<strong>in</strong>g <strong>the</strong> value creation mechanism <strong>of</strong> music br<strong>and</strong><strong>in</strong>g I demonstrated <strong>the</strong> primary<br />

research <strong>of</strong> this paper. As an exploratory research I conducted four focus group <strong>in</strong>terviews<br />

with customers <strong>and</strong> 12 <strong>in</strong>-depth <strong>in</strong>terviews with practitioners. <strong>The</strong> results supported <strong>the</strong><br />

<strong>the</strong>ories <strong>of</strong> music br<strong>and</strong><strong>in</strong>g, especially <strong>the</strong> importance <strong>of</strong> shift <strong>in</strong> br<strong>and</strong><strong>in</strong>g practice. <strong>Music</strong><br />

br<strong>and</strong><strong>in</strong>g can provide added values for all shareholders, which can result <strong>in</strong> a better customer<br />

experience <strong>and</strong> loyal fan base accompanied by a better br<strong>and</strong> <strong>and</strong> b<strong>and</strong> image.<br />

As we could see, engagement towards music is present from ancient times when people f<strong>in</strong>d<br />

<strong>the</strong>ir musical <strong>in</strong>struments <strong>in</strong> forms <strong>of</strong> stones or o<strong>the</strong>r objects. This basic <strong>in</strong>st<strong>in</strong>ct is still <strong>in</strong>side<br />

our behaviour <strong>and</strong> spirit accord<strong>in</strong>g to Br<strong>and</strong>amp (2009, p. 54.): “<strong>Music</strong> is able to evoke <strong>the</strong><br />

<strong>in</strong>st<strong>in</strong>ct <strong>of</strong> subconscious <strong>and</strong> happ<strong>in</strong>ess avoid<strong>in</strong>g any logical methods by affect<strong>in</strong>g emotions”.<br />

<strong>The</strong> question is still on whe<strong>the</strong>r br<strong>and</strong>s will recognize <strong>the</strong> importance <strong>of</strong> music br<strong>and</strong><strong>in</strong>g <strong>and</strong><br />

whe<strong>the</strong>r <strong>the</strong>y will <strong>in</strong>tegrate <strong>in</strong>to <strong>the</strong>ir br<strong>and</strong><strong>in</strong>g strategy. This paper gave <strong>the</strong> answer, but <strong>its</strong><br />

possible implementation is still <strong>the</strong> music <strong>of</strong> <strong>the</strong> future…<br />

29


8. Future Research Opportunities<br />

In <strong>the</strong> future <strong>the</strong> focus from qualitative research could be shifted to quantitative one where<br />

quantifiable data could be collected <strong>in</strong> order to analyse <strong>the</strong> topic on a descriptive level<br />

uncover<strong>in</strong>g stastical correlations <strong>and</strong> <strong>in</strong>dicators.<br />

Fur<strong>the</strong>rmore, <strong>the</strong> music br<strong>and</strong><strong>in</strong>g phenomenon should be analysed from an advertis<strong>in</strong>g<br />

agency’s po<strong>in</strong>t <strong>of</strong> view as well. Although, <strong>in</strong> Hungary <strong>the</strong>re is no such an agency be<strong>in</strong>g expert<br />

<strong>in</strong> music br<strong>and</strong><strong>in</strong>g strategies, <strong>the</strong>re are several examples abroad (UK, USA) where campaigns<br />

connected to music br<strong>and</strong><strong>in</strong>g are <strong>the</strong> central activity <strong>of</strong> <strong>the</strong>se k<strong>in</strong>ds <strong>of</strong> agencies. With a reliable<br />

database <strong>of</strong> companies it is possible to measure <strong>the</strong> attitude toward music br<strong>and</strong><strong>in</strong>g <strong>and</strong> <strong>the</strong><br />

quantity <strong>of</strong> practical examples as well.<br />

30


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