CCM Music Recording Company Case Study Part 2 - Evaluation of Resources & Capabilities Section 1
Introduction
The Classical Christian Music (CCM) recording company case study was analyzed to determine the most useful resources and capabilities of the resources in order to enhance operations. The analysis concluded that it would be beneficial for the CCM recording company to develop a social media management resource, an electronic music distribution resource, an electronic music library resource, and a marketing and advertising campaign plan resource. With these new resources in place, the new department could potentially increase revenue by $39,000 due to increased production volume and awareness of their product. To effectively accomplish this task would require increased staffing for social media management ($12k), electronic music distribution ($35k), electronic music library ($10k), marketing campaign plan creation ($60k). But this analysis also identified that the company had an internal team of individuals with these capabilities. As a result, no enhancement was required to the current capability level and resources.
1) Evaluation of Resources & Capabilities: First, it is important to understand two terms that are often used in marketing. One is cost per acquisition (CPA), which refers to how much money a promotion needs in order to get one additional customer. The other is cost per customer (CP) which refers to how much money needed in order to get one additional customer worth more than $5,000/year. It's important to note that social media marketing and advertising are not necessarily cheap; however, they can be very effective in gaining new customers.
2) Evaluation of Resources: While the company was able to do an assessment of resources by analyzing their existing network, no assessment was conducted to determine if these previous resources were still useful. As a result, it is likely that some or all of the current resources may not be useful.
3) Evaluation of Capabilities: There are three types of capabilities that are important for a marketing department; one being technological, two being human, and three being financial. A company that has a poor capability in any area can pose great risk in attempting to implement social media marketing as even one small error can lead to great injury to the organization.
4) Strategic Marketing Plan Recommendation: If a strategic marketing plan were to be developed for this company it would need to go over the following three aspects. First, what is the current strategy and how will social media be used to enhance that strategy? Second, what are the key risks that are involved with utilizing social media? And finally, how will success be measured?
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Title: CCM Music Recording Company Case Study Part 3 - Strategic Marketing Plan Recommendation
Section 2
Introduction: The Classical Christian Music (CCM) recording company case study was analyzed to determine the most useful resources and capabilities of these resources in order to enhance operations. The analysis concluded that it would be beneficial for the CCM recording company to develop a social media management resource, an electronic music distribution resource, an electronic music library resource, and a marketing and advertising campaign plan resource. With these new resources in place, the new department could potentially increase revenue by $39,000 due to increased production volume and awareness of their product. To effectively accomplish this task would require increased staffing for social media management ($12k), electronic music distribution ($35k), electronic music library ($10k), marketing campaign plan creation ($60k). But this analysis also identified that the company had an internal team of individuals with these capabilities. As a result, no enhancement was required to the current capability level and resources.
1) Current Strategy: The current strategy of the CCM recording company is to release individual songs and albums and then sell those products by using word of mouth, positive reviews, and press releases. The goal is to try to get the product into mainstream markets where it will increase production volume. The intention is to build upon the traditional marketing channels used by classical companies.
2) Analysis of Key Risks: As with any new business endeavor there are many risks involved, and for social media and electronic music distribution the risks are much higher. A few of the key risks include not being able to utilize technology (knowledge, resources, time) effectively, not being able to find a way to market the product effectively, not being able to negotiate contracts effectively, or possibly not even having a product that consumers want. There are clearly many other risks that could be analyzed as well but these ones have been chosen as they are some of the most major at this current point in time. Risks can be significantly mitigated by maintain open communication between management and staff, training and educating staff, building relationships with others in the industry, and by relying on previous experience.
3) Success Metrics: There are many ways that CCM Music Recording Company could measure success for their social media campaign. One of the easiest ways would be to look at the number of downloads from each form of distribution. Each action can then be weighed against a cost per acquisition or cost per customer and then at the end of each period a profit/loss calculation could be done based on these figures along with other costs incurred such as salaries or production costs. Another metric that can be used is the number of customers who are turned on to the product or are then following the product. This information can be assessed by analyzing how many followers each channel has and then tracking those that follow the CCM recording company music, become social media fans (“likes”) for the company, or make purchases. Still another metric that could be used is a customer satisfaction survey in which users are asked how satisfied they are with their experience and whether they intend to recommend other people use it.
Conclusion: The Classical Christian Music (CCM) recording company case study analysis concluded that it would be beneficial for this company to develop a social media department and electronic music distribution resource. This could potentially increase the company's revenue by $39,000 due to increased production volume, awareness of their product, and customers turning on to the products.
SECTION 3 - CCM Music Recording Company Case Study Analysis Part 3
Introduction: The CCM Music Recording Company case study was analyzed to determine if a strategic marketing plan could be developed for this organization.